EBRD Commits $25 Million Investment in 'Georgian Capital' $150 Million Bonds

The European Bank for Reconstruction and Development (EBRD) has announced a substantial transaction in Georgia's capital market, with a $25 million investment in the $150 million bonds issued by JSC 'Georgian Capital' (GCAP).

This transaction marks the largest security in Georgia's capital market history.

The invested funds will be utilized to refinance GCAP's Eurobonds, an action which promises to enhance the company's investment potential and fortify its capital management capabilities. The transaction aligns with both the Sustainable Linked Bonds (SLB) framework and GCAP's environmental commitments, including an ambitious aim to achieve a 20% reduction in carbon dioxide emissions by the end of 2027.

The bonds, issued on August 3, 2023, are denominated in US dollars and carry a fixed interest rate of 8.5% for a term of 5 years. The bond issue adheres to the International Capital Markets Association (ICMA) SLB Principles and will be listed on the Georgian Stock Exchange. Several international financial institutions partnered to support this issue.

EBRD and GCAP have enjoyed a long-standing and productive partnership, with notable collaboration on the issuance of the first Eurobonds in 2018.

GCAP is a diversified holding company with a presence across various sectors, including healthcare, insurance, pharmacy, renewable energy, and others. Of special note, GCAP stands as the sole non-banking organization from Georgia listed on the London Stock Exchange.

To date, EBRD has injected nearly 5 billion euros into 286 projects in Georgia, with a considerable 82% of these investments originating from the private sector. The bank's primary investment focuses encompass the financial sector, sustainable infrastructure, manufacturing, services, and support for small and medium enterprises (SMEs).