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MediaPress Releases Galt & Taggart Supported Tegeta Holding's $25 Million Securities Offering

Galt & Taggart Supported Tegeta Holding's $25 Million Securities Offering

Galt & Taggart Supported Tegeta Holding's $25 Million Securities Offering

Tegeta Holding, with the support of Galt & Taggart, has successfully placed bonds worth 20 million USD and 5 million EUR. The bonds will be issued for a period of two years, with interest payments made every six months at an annual rate of 8.5 percent for bonds denominated in US dollars and 7.0 percent for bonds priced in Euros.

This is the first public issue in foreign currency by a leading company in the auto industry, in which investment is also available to individuals.

It should be noted that the interest of investors is quite high. As of now, about 150 Georgian and foreign individuals have purchased bonds, which indicates a high diversification of the investor base.

According to the plan of Tegeta Holding, the amount collected as a result of the bond issue will be fully used for the refinancing of the existing debt obligations, after which the maturity profile of the company's obligations and the company's liquidity will be improved.

Vakhtang Kacharava, Executive Director of Tegeta Holding: This is the second issue of Tegeta in the last few months. This time our offer is also available for individuals as well. The interest was great, the demand exceeded the volume of issued papers, and accordingly we increased the volume of the issue. This fact indicates high confidence and positive future expectations towards the company. All documents prepared within the framework of the public bond issue are public and available to interested parties. The future strategy of Tegeta aims to strengthen the representation on the international markets, therefore, securities were placed in foreign currency. This decision fully responds to the company's development strategy in foreign markets. In addition, for Tegeta, as one of the largest businesses in the country, it is important to develop the capital market in the country. We want to contribute to this process. On the one hand, this is financially beneficial for the company, and on the other hand, it clearly shows the scale of progress and business development of Tegeta Holding as a reliable partner.

The offer of Tegeta Holding attracted a lot of interest from investors, and accordingly, the volume of bonds denominated in US dollars increased from the initial 10 million US dollars to 20 million US dollars. At the current stage, securities in the amount of 15 million US dollars and 4 million euros are placed. Within the framework of the same emission prospectus, the leading company of the auto industry plans to issue an additional tranche in the near future. During the current year, the holding will issue an additional 5 million US dollars.

Within the mentioned transaction, Galt & Taggart investment bank was the partner and supporter of Tegeta Holding, which managed the entire issuing process.

Irakli Kirtava, General Director of Galt & Taggart: "I am glad that Galt & Taggart was actively involved in the successful implementation of such an important transaction in the role of placement and calculation agent. The unique feature of the deal is worth noting, which involves the structuring of multi-currency transactions within a single issue prospectus. We hope that many more similar transactions will be carried out within the framework of our cooperation in the future. Here, I would like to thank and congratulate the entire Galt & Taggart team for another successful and exciting transaction. Galt & Taggart has been a leading investment bank in the Georgian market for years, which effectively cooperates with various representatives of the private and public sectors, as well as with international financial institutions.

For your information, Tegeta carried out the first successful issue in 2019 and placed bonds of 30 million GEL. A significant part of them was acquired by the European Bank for Reconstruction and Development.

At the end of last year, the company made the largest issue of local corporate bonds denominated in GEL in the history of Georgia and issued bonds worth 150 million GEL. The investor base of the mentioned bonds is diversified and no investor's share in the placement exceeds 30%.

In the near future, Tegeta Holding plans to become more active in the capital market and issue green bonds for international financial companies.