Bank of Georgia issues 500m worth of bonds in GEL
Monday, May 29The Bank of Georgia has issued 500 million GEL worth of bonds on international markets with a coupon rate of 11 percent.
The bonds will be in use from June of 2020.
On closing, the issuance is expected to be the first international local currency bond offering from the wider Commonwealth of Independent States (CIS) region (excluding Russia) in the past 10 years and will represent a landmark transaction for Georgia.
“It is a huge success of our country and financial sector,” Georgia’s Prime Minister Giorgi Kvirikashvili said while praising the Bank of Georgia’s activity.
The PM said it was the first time that a Georgian financial institution issued securities in the Georgian lari.
“This means that investors in our country trust our national currency. These are three-year bonds with a coupon rate of 11 percent, and it is a giant step forward because it is the first time that bonds in our national currency were issued in international markets,” Kvirikashvili said.
“All this means that our country's no-risk interest, that is, the interest at which the Government borrows, will be even lower. Most importantly, however, international investors trust our country and our national currency. It is a momentous event, and I would like to congratulate everyone,” he added.
The Prime Minister thanked the Bank of Georgia for its efforts. The head of the Government said the 500 million GEL will be used to finance the country's business, production, and entrepreneurs, and was a 'significant economic injection'.