LONDON (ShareCast) - (ShareCast News) - BGEO Group's water utility business issued a 30m Georgian lari currency bond (about £9m), the largest ever issued in local currency by a non-financial institution from the central Asian country.
Georgia Global Utilities, with the company's banking arm Galt & Taggart, has placed a GEL30m local currency bond with a five-year tenor and an annual coupon rate of National Bank of Georgia local currency refinancing rate plus 3.5%.

Chief executive Irakli Gilauri said the bond was in line with Georgia Global Utilities's funding strategy to raise new funding in local currency with longer-term maturity.

"Georgia Global Utilities is diversifying its sources of local currency funding through this bond placement, following its conversion of foreign currency borrowings into local currency, through local commercial banks, earlier this year."

He added: "I am glad that Galt & Taggart, our investment banking and brokerage subsidiary, acted as a placement agent, and thus successfully continues to lead the local capital market development in Georgia."

On 5 December, the company's other subsidiary, the Bank of Georgia, issued a two year local currency linked global note worth GEL21m, which was to be settled in US dollars. This was the first Georgian lari-linked global note issued in the country and would enable the bank to diversify its funding and provide overseas investors access to local currency notes issued by the private sector.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE