Page 47 - GEORptDec19

Georgia’s largest private healthcare services provider issues GEL50mn bond
increase in the corporation's credit rating.
According to financial reports, the value of the assets of GOGC is GEL1.69bn ($570mn). Last year the company's total revenue was GEL642.6mn ($235mn) and net profit was GEL161.4mn (nearly $60mn).
Georgia Healthcare Group PLC, listed on the London Stock Exchange with a GBP237mn capitalisation), has announced that its hospitals business, JSC Evex Hospitals, has completed the public placement of a GEL50mn (€17mn) unsecured local bond due 2024 on the Georgian market.
“The issuance of bonds helps us to further decrease our cost of funding, contributing to the healthy growth of the business,” commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.
Evex Hospitals is the largest healthcare services provider in Georgia and is fully owned by JSC Georgia Healthcare Group (GHG).
JSC Galt & Taggart acted as a lead manager for the bond issue.
The European Bank for Reconstruction and Development (EBRD) subscribed to one-quarter of the bonds.
The bonds were priced at par on 6 November and they carry a floating coupon rate with a 310 bp premium over the National Bank of Georgia monetary policy rate (the refinancing rate, currently at 8.5%). The premium is, historically, the lowest margin floating rate among corporate bond issuances on the Georgian market, GHG announced.
The proceeds will be used to refinance more expensive borrowings.
“We are delighted to be part of this important deal, contributing towards the development of more efficient and deeper local currency capital markets. The transaction sends a strong signal that bonds are a viable source of local currency funding for the private corporate sector,” said Catarina Bjorlin Hansen, EBRD regional director for the Caucasus.
9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1 ​Oil & gas sector news
No Azerbaijani gas will flow to the European Union market until at least October 2020. ​And a gas supply company in Azerbaijan may end up facing a big bill because of the delays. That much became clear on November 1 after the head of the Trans-Anatolian Natural Gas Pipeline (TANAP) consortium gave an interview to Reuters.
Gas supplies from Azerbaijan’s giant Shah Deniz field in the Caspian Sea are to reach Europe via the $40bn Southern Gas Corridor (SGC), supported by the European Union as a major step in diversifying energy supplies away from over-dependence on existing sources such as Russia and Norway. The SGC links the 692-km South Caucasus Pipeline (SCP) running from Azerbaijan to Georgia,​ ​TANAP, which runs 1,850 km from the Georgian border through Turkey to the Greek border​ ​and the Trans-Adriatic Pipeline (TAP), an 878 km pipeline which traverses Greece and Albania and an Adriatic seabed route to southern Italy.
“It is not TANAP, but the other parties that have not yet reached project
47​ GEORGIA Country Report​ December 2019 ​ ​www.intellinews.com