Rico Express Issues $10 Million in Bonds with Support from TBC Capital

Microfinance organisation Rico Express has successfully issued $10 million in three-year public bonds under its $100 million bond programme. This is the first time a microfinance organisation has placed foreign-currency securities on Georgia’s capital market. TBC Capital acted as the exclusive placement agent. The bonds are expected to be listed on the Georgian Stock Exchange.

The bonds carry a 7.00% coupon rate, the lowest for three-year bonds issued by non-bank companies in the past five years.

The proceeds will be used to refinance short-term borrowings and grow the company’s portfolio.

“I congratulate Rico Express on the successful placement of its first foreign-currency bond. Investor interest was strong, allowing the company to place the bonds on competitive terms. I am pleased that Rico Express chose TBC Capital as its partner for raising funds in foreign currency. As a result, the company secured financing on better terms, which is important for its business development.

“Transactions like this help companies diversify their funding sources, expand their investor base and raise capital on competitive terms. That is why we are actively involved in developing the capital market. This year, we have participated in 13 private and public transactions by companies and maintained our market-leading position with a 59.7% share,” said Otar Sharikadze, Director of TBC Capital.

“The success of every transaction in the market depends significantly on stability in both the capital market and the wider economy. Stable economic growth substantially reduces the country’s risk premium, enabling the private sector to raise funds on more favourable terms. We are seeing positive trends in the development of the capital market. Last year was very active, and market participants have continued to show strong activity this year,” said Ekaterine Mikabadze, First Vice Governor of the National Bank of Georgia.