One of the largest investment platforms in Georgia and a 100% subsidiary of Georgia Capital PLC (Group), JSC Georgia Capital (Georgia Capital, GCAP, the Company) - with the help of Galt & Taggart and TBC Capital, successfully placed US$150 mln. 5-year sustainability-linked bonds on the Georgian capital market. The bonds represent the largest corporate transaction in the regional market.
The Bonds were successfully issued on August 3, whereas as a result of successful pricing and book-building for the bonds, the fixed coupon was set at 8.50%. the Bonds were assigned BB- credit rating by S&PThe issuer intends to admit and list the issued bonds to the trading systems of the Georgian Stock Exchange and Clearsteam.
The main part of the raised funds, with the liquid funds already mobilized by the Company, will be used to refinance the existing Eurobonds. After that, the Company's total debt will be reduced from the current US$300 mln. to US$150 mln.
The transaction marks several significant milestones and contributes to the development of the Georgian capital market, which was made possible through the Group’s unique experience on local and international capital markets, as well as exceptional access to capital and a broad investor base. The total interest expressed for the purchase of bonds exceeded the bond issue volume by approximately 33%. The transaction is additionally characterized by unprecedentedly high interest and participation both from retail investors (55%) and international and commercial investors (45%). Additionally, this is the first local, foreign currency issuance, in which the Pension Agency also participated. All these indicate a high degree of confidence from investors and positive expectations towards Georgia Capital JSC and the Georgian economy as a whole.
