Page 35 - bne IntelliNews Georgia country report November 2017

lari-denominated eurobond, to be listed on the Irish Stock Exchange with a maturity of three years. The IFC's decision to purchase a fifth of the coupons amounts to a vote of confidence in the Georgian currency and economy.
The small country in the South Caucasus has been a regional leader in economic growth over recent years. This has translated into increased interest from foreign investors in sectors like construction, transport, infrastructure and hospitality.
Together with TBC Bank, Bank of Georgia holds two-thirds of the banking sector assets in the country. The two lenders are both listed in London.
The IFC acted as an anchor investment for Bank of Georgia's issuance, offering to purchase up to 30% of the bonds upfront. In total, about 20 international investors purchased the entire offering, the IFC said in a press release.
"This landmark bond has as much a development, as a funding purpose. The successful completion of the issuance has greatly expanded the investor base in lari and, I hope, will deepen local fixed income and currency markets," Kaha Kiknavelidze, the CEO of Bank of Georgia, said.
9.0 Industry & Sectors 9.1 Sector and corporate news
9.1.1 Oil & gas sector news
Georgia imports most of its gas from Azerbaijan (87%) and receives marginal amounts from Russia as a transit fee for Russian gas exports to Armenia. In 2015, Georgia's gas consumption increased by 19% y/y to 2.49bn cubic metres, prompting negotiations between Tbilisi and Russia’s Gazprom to increase Russian export volumes to Georgia.
Opposition parties have criticised the Georgian government for initiating talks with Gazprom, which is perceived as a political tool of the Kremlin. Until 2007, Georgia used to import all its gas from Russia, but diversified its imports after the 2008 Russian invasion of its territory and after neighbouring Azerbaijan launched its gas production.
American energy company Frontera Resources has made several exploration attempts in Georgia, but appear to have been fruitless thus far.
9.1.2 Transport sector news
The Baku-Tbilisi-Kars (BTK) 826-kilometre railway, connecting Azerbaijan to Georgia and Turkey, was inaugurated on October 30 when two freight trains carrying goods from Kazakhstan were set in motion from the Azerbaijani port of Alat. The project has been in the making for over a decade. Estimates of its cost vary between $1bn and over $3bn.
In attendance at the inauguration, the presidents of Turkey and Azerbaijan and
35 GEORGIA Country Report November 2017 www.intellinews.com