Page 53 - GEORptSep21

Georgian oil company GOGC refinances $250mn eurobonds with EBRD loan
"I would like to thank all the international investment banks (JP Morgan, Goldman Sachs, ICBC Standard) and local investment banks (TBC Capital and Galt & Taggart) involved in the transaction, thev've made a significant contribution to the successful implementation of this stage of the transaction. I will talk to the media about this topic in detail tomorrow," the finance minister wrote on April 15.
The new $500mn of foreign debt will refinance eurobonds issued in 2011. The deadline to repay the principal, namely $500mn, came on April 12. According to the finance ministry, Georgia repaid this obligation from its own funds last week.
The European Bank for Reconstruction and Development (EBRD) is to extend a €217mn senior unsecured loan to state-owned Georgian Oil and Gas Corporation (GOGC) for the refinancing of a $250mn eurobond that matures in April 2021, the EBRD said in a statement.
The funding agreement was made in response to the economic shock caused by the coronavirus (COVID-19) pandemic.
In addition, the financial package is to support planned reforms at the state company, including the development of a natural gas exchange.
The loan will improve the liquidity of GOGC, which has been damaged by the economic impact of the COVID-19 crisis, and will alleviate difficulties in tapping the capital market, the EBRD said.
The corporation is one of the largest state-owned companies.Its revenue increased by 37% to Georgian lari (GEL) 880.6mn ($330mn) in 2019. Net profit fell 22.8% to GEL121.4mn in the year. Despite declining profits, GOGC was still one of the most profitable state-owned enterprises in Georgia in 2019.
The total assets of GOGC include main gas pipelines, as well as the combined cycle power plants Gardabani 1 and Gardabani 2—the latter of which was officially put into operation at the end of 2019. The two power plants account for 20% of the country's electricity consumption and also provide balancing system services for intermittent production at hydropower plants.
It was in 2012 that GOGC issued a $250mn eurobond and listed it on the London Stock Exchange. In April 2016, it refinanced the eurobond, with a deadline for repayment of April 26, 2021.
53 GEORGIA Country Report September 2021 www.intellinews.com