Page 45 - GEORptAug20

($1.1 bn, 7% of GDP) anti-crisis package. Out of this, nonetheless, at least GEL1.1bn will be loans extended to banks (as opposed to expenditures).
Fitch expected that Georgia's fiscal deficit should narrow towards 5.0% of GDP in 2021 due to the fading of one-off expenditure and recovery in economic growth.
General government debt is projected to increase significantly, from 39.8% at end-2019 to 59.4% of GDP in 2020, before declining moderately to 56.3% in 2021, according to the forecast of Fitch.
Fitch expected the global economy to go through a deep but short-lived recession in 2020 due to the pandemic. In particular, eurozone GDP was expected to fall by 7.0% in 2020, followed by 4.3% growth in 2021. The rating agency noted “an unusually high level of uncertainty around these forecasts with the risks firmly to the downside.”
8.5 ​Fixed income
8.5.1​ ​Fixed income - bond news
Georgia utility group GGU issues $250mn green bond
Georgia Capital has announced that the holding company of the Group's water utility and operational Georgia Global Utilities (GGU) renewable energy assets successfully priced an inaugural $250mn green bond offering.
The senior unsecured dollar-denominated 7.75% green notes, with a 5-year non-call 2-year bullet maturity, are expected to settle on July 30.
The notes are being issued and sold at par value.
GGU has thus issued Georgia's first-ever green notes, said Irakli Gilauri, Georgia Capital chairman and CEO. He also said that the German Development Bank (DEG) and Netherlands Development Finance Company (FMO), together with the Asian Development Bank (ADB), were the leading investors.
The proceeds will be used to refinance all existing loan arrangements of GGU and finance capital expenditures in the water supply and sanitation business. The notes are expected to be listed on the Global Exchange Market of the Irish Stock Exchange and to be rated B+/stable by Fitch Ratings and B/positive by Standard &Poor's.
GGU obtained a second party opinion from Sustainalytics, a leading provider of environmental, social and governance (ESG) research and analysis, for its Green Bond Framework.
JP Morgan acted as sole bookrunner, green structuring agent and development finance structuring agent of the notes and TBC Capital acted as co-manager.
45​ GEORGIA Country Report ​August 2020 ​ ​www.intellinews.com