By Marisa Wong
Los Angeles, Aug. 9 – Georgia Capital plc announced that JSC Georgia Capital, the Georgian holding company of its businesses, priced a $150 million sustainability-linked bond offering on the Georgian market.
The dollar-denominated notes (BB-) have a five-year bullet maturity and are callable after two years.
The notes were issued at par with a coupon of 8½%.
Galt and Taggart and TBC Capital acted as placement agents.
The notes attracted an unprecedented level of interest in Georgia, with total demand reaching $200 million and spreading across a diverse range of over 275 retail, corporate and institutional investors, according to a press release.
Existing eurobond investors also participated in the notes, with holders of $23 million of the existing eurobond transitioning their holdings into the new notes. The existing eurobonds are Georgia Capital’s $300 million 6 1/8% notes due 2024 (ISINs: XS1778929478, US373143AA49).
Accordingly, the amount of eurobonds repurchased and held in Georgia Capital’s treasury increased to $107 million.
The new issuance was supported by Georgia Capital’s longstanding partner international financial institutions: European Bank for Reconstruction and Development, Asian Infrastructure Investment Bank, Asian Development Bank and International Finance Corp. The banks are set to acquire $67 million of the total issue, while the remaining $83 million will be acquired by local investors.
Proceeds, along with Georgia Capital’s existing liquid funds, will be used to fully redeem the existing $300 million 6 1/8% notes due 2024.
Georgia Capital’s July 12 tender offer for the 6 1/8% notes due 2024 expired on Aug. 8. The company accepted $176,521,000 tendered notes for purchase, as announced in a Wednesday press release.
In another announcement on Wednesday, the company said it issued a make-whole call for the remaining 6 1/8% notes due 2024.
As a result of the new issuance and the tender offer and make-whole call for the existing notes, the company’s gross debt balance will decrease from $300 million to $150 million.
Georgia Capital is a Tbilisi, Georgia-based holding company focused on investment in developing businesses in Georgia.
| Issuer: | JSC Georgia Capital
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| Amount: | $150 million
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| Issue: | Sustainability-linked bonds
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| Maturity: | Five years
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| Placement agents: | Galt and Taggart and TBC Capital
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| Coupon: | 8½%
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| Price: | Par
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| Yield: | 8½%
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| Settlement date: | Aug. 3
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| Listing: | Georgia
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| Price talk: | 8% to 8½%
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