The first tranche of US$ 20 million offers a coupon of 9.00% p.a. (gross) with a maturity of 3 years. The second US$ 20 million tranche is expected to be issued later this year.
SRG Real Estate will now become a publicly listed company on the Georgian Stock Exchange, which is a testament to the company’s continued success in recent years. The bond issue was made possible with the support of TBC Capital, Galt & Taggart and Silk Bank.
George Ramishvili, Chairman and Founder, Silk Road Group, said: „This successful bond issue has only been possible as a result of the hard work undertaken by colleagues across SRG Real Estate, working together as one highly effective and motivated team. The company has one structure, which includes real estate, development, hospitality and entertainment, and colleagues across these divisions work in pursuit of the same goals with the backing of a reputable, international and independent board. This leads to tangible and impressive results. We work with globally renowned, star architects and designers, to give all our buildings an innovative and modern feel in keeping with international standards. It is what makes them unique and on the back of this bond issue, we look forward to investing more in Georgia.”
Mamuka Shurgaia, CEO of SRG Real Estate, said: „With the issue of today’s US$ 20 million bond, SRG Real Estate has become a publicly listed company. It is a landmark moment for the company, and it sends a clear signal that both international and local investors recognize the huge growth potential that Georgia and leading companies like SRG Real Estate can offer. I would like to thank my team and everyone involved in this process for their help in making this possible. Also, I would like to extend a special thanks to our partners, the Partnership Fund, TBC Bank and Bank of Georgia. Thank you for making this a reality, and now we look forward to putting the proceeds of this bond into action.”
George Tkhelidze, Deputy Director, TBC Bank, commented: „We are delighted that we have supported SRG Real Estate’s inaugural bond issuance, enabling the company to find alternative sources of financing through capital markets. It is noteworthy, that the partnership between Silk Road Group and TBC commenced in 2015 and since then, we have implemented many outstanding real estate development projects with the highest standards. TBC Capital is actively engaged in local bond placements and development of local capital market, supporting Georgia to become more attractive for both local and foreign capital.“
Zurab Kokosadze, Deputy Director, Bank of Georgia, commented: „I am pleased to emphasize Galt & Taggart’s role in the inaugural issuance of SRG Real Estate bonds. This is the first joint transaction for Galt & Taggart, TBC Capital, Silk Bank and SRG Real Estate. We hope that the partnership will continue in the future and we will be able to support other initiatives of the issuer. Moreover, I would like to congratulate my fellow colleagues from Galt & Taggart on one more successful transaction. Throughout years, Galt & Taggart, as an investment bank, has effectively partnered with private and public sector representatives, as well as international financial institutions.“
SRG Real Estate has two core divisions, Silk Development, which manages the development of new real estate projects, and Silk Hospitality, which is the operating company for most of the developed properties of the company, as well as for third-party properties.
Together, the two divisions have developed and now manage important assets across Georgia, including:
- Radisson Blu branded hotels located in Tbilisi and Batumi
- A Radisson Collection branded hotel located in the historic Tsinandali Estate and the Park Hotel Tsinandali
- Casinos Iveria in Tbilisi and Batumi
- Republic, a collection of high-end Georgian restaurants and eateries
- Event facilities and clubs
The company is currently developing several large-scale projects in different regions of Georgia, including another 5-star hotel, The Telegraph Hotel, in the center of Tbilisi. The combined assets owned by the company are valued above 900 million GEL (US$ 360 million).
SRG Real Estate is part of the Silk Road Group, which has invested around US$ 1 billion in the Georgian economy since 2005. The Silk Road Group investments also include Silknet, Silk Bank, Bakhvi Hydro Power and others.
The bond issues were undertaken as part of Silk Road Group’s financing strategy to secure new sources of financing for upcoming investments. The proceeds of the bond issue will go towards:
• Refinancing existing bank debt
• Buying-out the Georgian Partnership Fund, which had provided mezzanine financing for the development of Tsinandali Radisson Collection
