Page 53 - GEORptSep20

EBRD extends €​25mn loan to private operator Georgian Healthcare Group amid pandemic
represents a 9.4% premium.
Should all Georgia Healthcare shareholders accept the offer, they will own around 16.15% of Georgia Capital's enlarged share capital.
Georgia Healthcare’s just published Q1 results showed a swing to a Georgian lari (GEL) 7.5mn loss ($2.3mn) from a GEL17.4mn profit a year ago. The company posted revenues that were 10.6% y/y stronger at GEL260.1mn ($81.3mn). However, it incurred a GEL21.9mn loss caused by currency lari depreciation versus only a GEL148,000 loss in the prior year.
Separately, Georgia Capital issued a Q1 trading update. It showed its net asset value per share on March 20 to be GEL20.18, down 36% from GEL46.84 at the end of 2019.
This was attributed to "depressed valuations" of Bank of Georgia Group and Georgia Healthcare.
The European Bank for Reconstruction and Development (EBRD) has agreed to provide a $25mn loan to LSE-listed Georgian Healthcare Group (GHG), Georgia's largest, integrated healthcare services, pharmacy and medical insurance provider.
The financing was approved as part of the development bank's response to the coronavirus (COVID-19) pandemic,​ ​the EBRD said​.
The loan is to finance GHG's short-term working capital and spending deemed critical amid the COVID-19 pandemic.
According to an official statement from the EBRD, GHG has an important state-aligned role in the fight against the health emergency. The company has adapted six large hospitals to meet needs of virus-infected patients in line with World Health Organization (WHO) guidelines.
The financing will support the implementation of COVID-19 testing at the country’s most advanced medical laboratory, at Megalab. It is also funded by the EBRD.
9.1.7 ​Agriculture sector news
Georgia’s wine exports to US rise in H1 despite lockdown
Wine exports from Georgia to the US increased by 5% y/y in volume in the first six months of 2020 despite coronavirus (COVID-19) lockdowns and economic downturns in both countries resulting from the pandemic, according to the National Wine Agency of Georgia as ​quoted​ by PRNewswire.
The latest gain follows five straight years of double-digit growth (running at over 30% on average) in Georgia's annual wine exports to the US. In 2019, Georgian wine exports to the US rose by 46% y/y, making the US Georgia's largest Western wine market.
Wines from 130 independent Georgian producers are now available in the US market.
"As the global coronavirus crisis unfolded, we were gratified to see continued strong interest in these wines from half a world away," said Julie Peterson, managing partner of Marq Wine Group. Peterson leads US strategy for the National Wine Agency of Georgia.
"American consumers are increasingly turning to wines that reflect the authenticity of a people and a place as they become more intentional about their food and wine choices during these unconventional times."
Swiss chocolate producer Chocolats Camille Bloch plans to set up hazelnut plantations in Georgia to produce crops dedicated to the production of its leading Ragusa brand, according to Agenda.ge.
53​ GEORGIA Country Report ​September 2020 ​ ​www.intellinews.com