Georgia Issues USD 500 Mln Eurobonds

Georgian Finance Minister Lasha Khutsishvili announced late on April 15 that Georgia has issued USD 500 million of Eurobonds with a five-year maturity on the London Stock Exchange, three days after repaying its ten-year obligations of 2011 in the same amount.

At a coupon rate of 2.75%, the securities are set to save the Georgian budget some GEL 350 million in interest payments compared to the 2011 Eurobonds that yielded 6.875%, the Finance Minister said at an April 16 press briefing.

The significantly lower interest rate was determined due to unprecedented demand, Minister Khutsishvili stated, dubbing it a demonstration of foreign investors’ confidence in the Georgian economy.

Alongside the Georgian Finance Ministry, international investment banks JP Morgan, Goldman Sachs, and ICBC Standard, also local TBC Capital and Galt & Taggart worked on the deal.

Noteworthy that the Eurobonds issued in 2011 also refinanced a previous loan, taken up in 2008 by the Georgian Government.

Also Read:

• 2011: Saakashvili Hails Gov’t for Issuing Eurobonds
• 2008: Georgia to Issue USD 500 mln Eurobonds

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