Bank of Georgia’s real estate subsidiary issues US$20 mln bonds
Bank of Georgia Holdings PLC (“BGH”), the holding company of JSC Bank of Georgia (“the Bank”), Georgia’s leading bank announces the successful completion of a US$20 million 2-year bond placement by the Bank’s wholly-owned real estate subsidiary m2 Real Estate. The bond was issued at par and carries a coupon rate of 9.5% payable semi-annually. The deal is expected to close on 20 March 2015. Galt & Taggart, the investment banking subsidiary of Bank of Georgia acted as placement agent for the deal.
“I am delighted that corporate bond issuance in Georgia continues to gain ground under the leadership of Galt & Taggart, in line with our strategy to generate fee and commission income from our banking business. This is the largest ever non-IFI corporate issuance and the third bond placement for m2 Real Estate in less than 12 months. The transaction was met with considerable interest particularly from our wealth management clients who were attracted to high yields on the back of lower deposit rates in Georgia,” commented Irakli Gilauri, CEO of Bank of Georgia.