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bne June 2017 Companies & Markets I 21
ers have chosen to go public in London instead.
At the same time, Georgia has become an attractive investor destination. Thanks to sustained growth rates of some 3% per year in 2015-2016 (which are expected to increase to more than 5% in 2018), investor-friendly policies, numerous free trade agreements, and close relations with the EU, but also with Iran, Turkey and Central Asian countries, Georgia is on
a growth wave that could very well be reflected in its capital market soon.
One recent development that could speed up the process is, according to Paresishvili, the fact that the GSE and the Central Securities Depository are working on a major upgrade of the
bne:Deal
trading platform, with the help of the central bank. "Once the upgrade is complete, it will provide much better access to non-resident investors to the local market. The upgrade will result in GSE using a state-of-the-art platform that will allow investors not only to trade stock, but also to lend, borrow and do all the operations that can be performed on developed stock exchanges," he explains.
As for the EBRD, Paresishvili hopes that the bank will continue to support the development of Georgia's capital market by moving into buying corporate bonds directly and thus acting like an anchor investor for the local market. "We have seen more issuances of local corporate bonds recently. In 2016, they represented 40% of the securities traded on GSE," he says.
Slovenia’s largest lender NLB announces IPO plans
bne IntelliNews
Slovenia’s nationalised Nova Ljubljanska Banka (NLB) has announced plans to proceed with an IPO of at least 50% of its existing ordinary shares on the Ljubljana Stock Exchange (LJSE). NLB also plans to list global depository receipts on the London Stock Exchange (LSE).
NLB was wholly nationalised as part of the Slovenian government’s bailout of several major banks in 2013, and its privatisation is required under Ljubljana’s commitments to the European Commission.
The offering is expected to be completed by mid-June, according to the NLB’s press release posted on the website of the LJSE on May 15.
Slovenia’s government, acting through holding company Slovenian Sovereign Holding (SSH), has also confirmed the plans for the IPO.
Deutsche Bank’s London branch is acting as sole global coordinator, and together with J.P. Morgan Securities and UBS as joint bookrunners. Wood & Company is acting as co-lead manager and Nova Ljubljanska banka d.d., Ljubljana as domestic co-lead manager, the lender said.
Slovenia had committed to sell 75% of the bank by the end
of 2017 in a restructuring plan that served as a basis for the European Commission's approval of state aid to the bank in the 2013 bailout. Initially the government planned to reduce its
100% stake to 25% plus one share via an IPO in 2017. However, the European Commission endorsed, on May 11, a request from the Slovenian government for a more gradual sale of the bank: a 50% stake by the end of 2017 and a further 25% by end-2018.
Commenting on the IPO plans, Lidia Glavina, president of the management board of SSH, described the move as a “milestone in the state asset management strategy of the Republic of Slovenia”.
“NLB has demonstrated significant progress in its business performance, through return to sustainable profitability and improving asset quality. We believe that the company is ready to enter a new period as a privatised company," Glavina said.
“The Slovenian government wants to sell a 50% stake by the end of 2017 and a further 25% by end-2018”
Standard & Poor’s Global Ratings raised its long-term counterparty credit rating on NLB from BB- to BB on May 12. At the same time, S&P affirmed the short-term counterparty credit rating at B, while the bank’s outlook remained positive.
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