Bank of Georgia Group PLC announces share buyback commencement

Bank of Georgia Group PLC (the “Group“) announces today that its Board of Directors (the “Board“) has approved the commencement of a GEL 72.7 million share buyback and cancellation programme. This is consistent with the Group’s capital and distribution policy, announced in September 2021, to target a dividend/share buyback payout ratio in the range of 30-50% of annual profits. The shares will be purchased in the open market. The purpose of the buyback is to reduce the share capital, and the cancellation of the treasury shares will be executed on a monthly basis.

At the 2022 Annual General Meeting, the shareholders approved a final dividend for 2021 of GEL 2.33 per share payable, on 14 July 2022, in Pounds Sterling at the prevailing rate. This will make a total dividend paid in respect of the Group’s 2021 earnings of GEL 3.81 per share, a payout ratio of 25% of 2021 earnings. The share buyback and cancellation programme increases the total dividend/share buyback payout ratio, relating to 2021 earnings, to 35%.

In accordance with the authority granted by the shareholders at the 2022 Annual General Meeting (“AGM“), the maximum number of shares that may be repurchased is 4,916,943. The programme will be conducted within certain pre-set parameters, and in accordance with the general authority to repurchase shares granted at the 2022 AGM, Chapter 12 of the FCA Listing Rules and the provisions of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation (EU) 2016/1052 (also as in force in the UK, from time to time, including, where relevant, pursuant to the UK’s Market Abuse (Amendment) (EU Exit) Regulations 2019).

The Company has appointed Numis Securities Limited (“Numis“) to manage the programme, which will commence on 11 July 2022, until the end of the programme on 31 December 2022. During any closed periods the Company and its directors have no power to invoke any changes to the programme and it will be executed at the sole discretion of Numis.

The Company will make further announcements in due course following the completion of any share repurchases.