Galt & Taggart announces successful issuance of EBRD’s private Georgian Lari denominated bonds
October , 2021, Tbilisi – the multilateral development bank (“MDB”) EBRD issued two more Georgian Lari denominated bonds with the coupon rate linked to 3-month TIBR (Tbilisi Interbank Interest Rate) on September 30th 2021, and October 8th 2021 respectively. The Georgian Lari (“GEL”) floating rate bonds in amount of GEL 92 million and GEL 93million have coupon linked to the 3-month TIBR and maturity of five year and 3 year and 9 months respectively. These were the EBRD’s fifth and sixths successful bond issuances in GEL to be lead managed by JSC Galt & Taggart.
Since its inaugural private placement in the Georgian market in March 2014, which was the first ever Georgian Lari bond by an international financial institution, EBRD has been working with the regulators, and in particular with the National Bank of Georgia, to clarify legislation and introduce regulatory changes to take account of its supranational structure and to recognise the specificities of MDBs, thereby ensuring that it could fulfill all the requirements for private and public offerings in the domestic market, including listing the bonds on the Georgian Stock Exchange.
The EBRD has sought, over many years, to tackle the problems of excessive reliance on foreign capital and foreign exchange borrowing in emerging economies, by encouraging borrowing in the local currency as well as developing or strengthening local capital markets. This offering, therefore, not only represents another step forward in the development of the local capital market but is also important in furthering the EBRD’s local currency lending programme in Georgia, which was started in December 2009. The proceeds of all five of EBRD’s Georgian Lari bonds in the Georgian domestic market are directed to key domestic projects.
“I am pleased to note Galt & Taggart’s role in these landmark transaction. This is second issuance using TIBR as a reference rate and is a step forward to establishing TIBR as a credible index, which is of great importance for the development of the GEL money and capital markets. Galt & Taggart has become the go-to provider of placement and underwriting services for IFIs and companies alike, as evidenced by our partnership with EBRD on each of its last four issuances in Georgia,” commented Otar Sharikadze, Managing Director of Galt & Taggart.
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