Georgia Capital PLC JSC Georgia Capital prices a bond offering (8766H)
01 Agosto 2023 - 1:00AM
UK Regulatory
TIDMCGEO
RNS Number : 8766H
Georgia Capital PLC
01 August 2023
London, 1 August 2023
JSC Georgia Capital prices a US$ 150 million bond offering
Georgia 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$-denominated with 5-year bullet maturity
(callable after two years), carry an 8.50% fixed coupon and were
issued at par. The Notes are rated BB- by S&P, a one-notch
upgrade compared to the existing Eurobond. Settlement of the
transaction is expected on 3 August 2023, followed by admission to
the Georgian Stock Exchange and Clearstream shortly thereafter.
Galt and Taggart and TBC Capital acted as placement agents for the
issuance of the Notes.
The Notes attracted an unprecedented level of interest in
Georgia, with total demand reaching US$ 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.
The 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 redemption at make
whole. As a result, GCAP's gross debt balance will decrease from
the current US$ 300 million to US$ 150 million.
Irakli Gilauri , Georgia Capital Chairman and CEO commented: "I
am delighted with this landmark transaction in the Georgian Capital
market. We have successfully priced the largest ever corporate bond
offering in Georgia. Despite the challenging global credit markets,
this transaction received very strong support from local investors
and was concluded on attractive terms for Georgia Capital. I would
like to thank EBRD, AIIB, ADB and IFC, our longstanding partners,
for supporting the transaction. Furthermore, I am pleased to see
that we have discovered a new type of investor universe and source
of funding for Georgia Capital and its portfolio companies, who
have shown strong confidence in GCAP by subscribing to a record
amount of the Notes in the history of Georgia. The strong demand
for our Notes demonstrates that capital markets in Georgia are
developing fast and, with the continued successful support from
local investment banks - Galt & Taggart and TBC Capital, can
become significant alternative sources of capital for our group.
The Notes represent another milestone achievement for GCAP and
demonstrate yet again our superior access to capital, whether on
the international or Georgian capital markets."
Name of authorised official of issuer responsible for making
notification: Shalva Bukia, Head of Investor Relations and
Funding
About Georgia Capital PLC
Georgia Capital (LEI: 213800Q65T5GNBOW7H65) is a platform for
buying, building and developing businesses in Georgia with holdings
in sectors that are expected to benefit from the continued growth
and further diversification of the Georgian economy. The Group's
focus is typically on larger-scale investment opportunities in
Georgia, which have the potential to reach at least GEL 300 million
equity value over 3-5 years from the initial investment and to
monetise them through exits, as investments mature. Georgia Capital
currently has the following portfolio businesses: (i) a retail
(pharmacy) business, (ii) a hospitals business, (iii) an insurance
business (P&C and medical insurance); (iv) a clinics and
diagnostics business, (v) a renewable energy business (hydro and
wind assets) and (vi) an education business; Georgia Capital also
holds other small private businesses across different industries in
Georgia; a 20.0% equity stake in the water utility business and a
19.9% equity stake (at 5-May-23) in LSE premium-listed Bank of
Georgia Group PLC ("BoG"), a leading universal bank in Georgia.
JSC Georgia Capital has, as
of the date hereof, the following
credit ratings:
S&P Global 'B+'/FC & 'B+'/LC
Moody's B1/CFR & B1/PDR
For further information, please visit www.georgiacapital.ge or
contact:
Irakli Gilauri Giorgi Alpaidze Michael Oliver Shalva Bukia
Chairman and Chief Executive Chief Financial Officer Adviser to the Chairman & CEO Head of Investor Relations
ir@gcap.ge +995 322 005 000 +44 203 178 4034 + 995 322 005 045
ir@gcap.ge ir@gcap.ge ir@gcap.ge
The Asian Infrastructure Investment Bank Project-affected
People's Mechanism
The Asian Infrastructure Investment Bank (AIIB) is one of the
subscribers of Georgia Capital's Notes, therefore the Policy on the
Project-affected People's Mechanism (PPM) of AIIB is applicable. If
projects involved in the Notes have negative environmental and
social impacts on your community and cannot be addressed
satisfactorily through Georgia Capital's grievance redress
mechanism or AIIB's Management's processes, you are welcome to
submit your concerns to the PPM. Information about the PPM is
available at How We Assist You - Project-Affected People's
Mechanism (aiib.org) .
This news report is presented for general informational purposes
only and should not be construed as an offer to sell or the
solicitation of an offer to buy any securities
[1] Subject to IFC internal approvals.
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END
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