The bonds were placed on the Georgian Stock Exchange in the national currency, which allows the company to avoid currency risks. Nikora will use the funds received from the bond placement to refinance existing liabilities and finance the company’s future development plans.
The bonds were placed in full at 100% of their nominal value. Their annual interest rate was determined as 3.5% plus the Tbilisi Interbank Offered Rate (TIBR3M).
The company received a credit rating from Scope Ratings, which was determined at BB-.
The aforementioned bond transaction is Nikora Group’s 6th successful placement on the local capital market.
The Pension Agency invested in the issue, which is the first local corporate securities it has purchased.
The bonds attracted high interest from financial institutions, and the placement was completed in a short time. Like other public bonds in GEL, these bonds will be pledgeable at the National Bank of Georgia, which will allow the investing commercial banks to attract additional GEL resources at an affordable price.
“For years, Nikora, together with its partners, has been actively working on the development of diversified sources of financial resources and has successfully implemented operations related to securities. Each time, the interest is very high. It is important that for the first time in Georgia, a pension agency invested in Nikora bonds, which is a testament to the great trust in our company. Nikora has an international credit rating (BB- with a stable outlook), which is the best assessment of the company in terms of both reliability and financial transparency. The issuance of securities allows us to use the attracted resources again for the development of the company, which is an important prerequisite for creating new jobs. We thank all participants for their involvement and successful activities,” says Irakli Bokolishvili, General Director of JSC Nikora.
“We have been cooperating with Nikora Group since 2017. The 5th issue placed with the involvement of TBC Capital is a clear example of our successful partnership and another step forward in the development of the local capital market. It is noteworthy that out of the total 5 issues, 2 are placements of JSC Nikora Trade, and 3 are placements of JSC Nikora. We are also pleased that we helped the Pension Agency, with the help of the capital market, find alternative sources of financing. It is important that TBC Capital is actively involved in the placement of local bonds, thereby contributing to making Georgia an attractive country for both local and foreign capital,” said Meri Chachanidze, Managing Director of TBC Capital.
“I am pleased to note the role of Galt & Taggart in the placement of Nikora Group bonds and congratulate the company on another successful placement, which indicates high trust from investors towards Nikora Group. It is noteworthy that by participating in this transaction, the Pension Agency invested for the first time in corporate debt securities issued on the Georgian market. In their form, another strategically important institutional investor was added to the local capital market. We hope that a number of similar transactions will be carried out in the future, which is probably especially important for GEL bond issues. I would like to congratulate the entire Galt & Taggart team on another success, together with our colleagues. Galt & Taggart has been effectively cooperating in the Georgian market as an investment bank for years, both with various representatives of the private and public sectors, as well as with international financial institutions. “with institutions,” said Otar Sharikadze, Managing Director of Galt & Taggart.
“First of all, I would like to congratulate Nikora on another successful issue, which speaks of the company’s sustainable development and high trust from investors. I would also like to thank the Galt & Taggart and TBC Capital teams for such efficient work and the successful completion of this placement. We are pleased to have participated in the placement of Nikora bonds, which, first of all, serves the best interests of our participants. This is our first investment in the local corporate bond market, which we always monitor and, as expected, we see its activation, especially in the part of new issues. We hope that this successful placement and our participation in it will be a certain incentive for new local issues, which will allow us to successfully invest pension savings in the securities of Georgian companies and contribute to the development of the local capital market,” says Goga Melikidze, Chief Investment Officer of the Pension Agency. Officer.
