State-owned Georgian Oil and Gas Corporation (GOGC) announced that it had placed USD 250 million eurobond in London Stock Exchange with a maturity of five years.
GOGC, which also operates the North-South Gas Pipeline, transporting gas from Russia to Armenia via Georgia, said on its website, that the bond, issued on May 9, was priced at a coupon of 7.125%.
Georgian PM Nika Gilauri told the Financial Times, that funds raised through eurobond would go to construction of two of three hydro power plants that would make Namakhvani Cascade in western Georgia. Georgia signed a memorandum on Namakhvani Cascade with a consortium led by the South Korean state-run Korea Electric Power Corp. (KEPCO) back in 2009, but the deal did not proceed.
The government said in April that it would launch initial public offering of minority stakes in major state-owned enterprises on the London Stock Exchange. The government also said that placement of eurobonds by some of the state-owned enterprises was also a possible option.
The Georgian Economy Ministry announced in April that the state-owned Georgian Railway LLC would sell up to 25% of shares through IPO on the London Stock Exchange (LSE) in May.