Business
JSC Georgia Capital prices a bond offering
JSC Georgia Capital prices a bond offering.
About this update from Georgia Capital Plc
[{"type":"text","content":"\n\n London, 1 August 2023\n \n \nJSC Georgia Capital prices a US$ 150 million bond offering\nGeorgia Capital PLC (the \"Company\" or \"GCAP\") announces that JSC Georgia Capital (\"JSC GCAP\"), the Georgian holding company of GCAP's businesses, has successfully priced a US$ 150 million sustainability-linked bond offering (the \"Notes\") on the Georgian market. The Notes are US$-denominated with 5-year bullet maturity (callable after two years), carry an 8.50% fixed coupon and were issued at par. The Notes are rated BB- by S&P, a one-notch upgrade compared to the existing Eurobond. Settlement of the transaction is expected on 3 August 2023, followed by admission to the Georgian Stock Exchange and Clearstream shortly thereafter. Galt and Taggart and TBC Capital acted as placement agents for the issuance of the Notes.\nThe Notes attracted an unprecedented level of interest in Georgia, with total demand reaching US$ 200 million and spreading across a diverse range of 275+ retail, corporate and institutional investors. Existing Eurobond investors also participated in the Notes, with holders of US$ 23 million of the existing Eurobond transitioning their holdings into the new Notes. Accordingly, the amount of Eurobonds repurchased and held in GCAP's treasury increased to US$ 107 million. The issuance of the Notes was supported by Georgia Capital's longstanding partner international financial institutions (\"IFIs\") - European Bank for Reconstruction and Development (\"EBRD\"), Asian Infrastructure Investment Bank (\"AIIB\"), Asian Development Bank (\"ADB\") and International Finance Corporation[1] (\"IFC\"), who are set to acquire US$ 67 million of the total issue, while the remaining US$ 83 million will be acquired by local investors.\nThe proceeds from the Notes, together with the existing liquid funds of GCAP, will be used to fully redeem the existing US$ 300 million Eurobond. The Tender Offer for Eurobonds, which commenced on 12 July 2023, remains ongoing, and the announcement of the Tender Offer results is anticipated on 9 August 2023. Following the issuance of the Notes and completion of the Tender Offer, GCAP intends to exercise its right to redeem any Eurobond not acquired in the Tender Offer according to the optional redemp...