Page 40 - GEORptAug19

performance and prospects, and a greater strategic alignment within the parent group would, in its view, increase BoG's propensity to support the company and could drive the equalisation of the ratings with the parent.
Fitch reported that a material weakening of BoG's propensity or ability to support the company might result in a wider differential in the awarded rating notches from the parent.
On April 16, Fitch affirmed the Long-Term IDRs of TBC Bank Group (TBC) and Bank of Georgia (BoG) at BB- and revised their Outlooks to Stable from Positive. The revision of the Outlooks on TBC and BoG to Stable from Positive reflected the rating agency’s view of still significant risks associated with continued rapid loan growth and sizable foreign currency (FC) lending.
8.5 Fixed income
8.5.1 Fixed income - bond news
Georgia’s largest lender TBC issues $300mn in unsecured bonds
Georgia’s TBC Bank, the largest bank in the country on all key metrics, on June 12 announced that it has successfully priced a debut $300mn, 5-year senior unsecured bonds issue.
Heavily overbooked, the issue was launched with a 5.75% coupon at a 6% yield—which the bank said was the lowest ever yield achieved by a Georgian issuer on the international debt markets.
It is expected that the bonds will be listed on the regulated Euronext Dublin market on or about June 19 with a rating of Ba2 by Moody's and BB- by Fitch. An application may be made to list the bonds on Georgia’s stock exchange as well. If successful, the issue would become Georgia’s first dual-listed international offering of senior unsecured notes.
“The $300mn will be used for funding Georgian small and medium sized businesses and will contribute to the growth of the Georgian economy,” Vakhtang Butskhrikidze, general director of TBC Bank said, as quoted by Interpressnews.
TBC Bank Group said on May 13 that its Q1 earnings surged 36.7% to GEL133mn (€43.4mn), the biggest jump it has recorded in seven quarters. Profits were driven by a loan book that grew on the back of a stable economy. FTSE-250-listed TBC, which serves retail, corporate and small and medium sized enterprise customers across the country, said gross loans and advances to customers rose 22.9% to GEL10.37bn (€3.37bn) from last year.
40 GEORGIA Country Report August 2019 www.intellinews.com