Page 44 - GEORptDec20

Georgia utility group GGU issues $250mn green bond
The bonds have a fixed 7.5% annual coupon.
The securities will be admitted to the local stock exchange and, consequently, the accrued interest will be exempt from taxes.
The bond will be fully repaid on August 31, 2022.
"The demand for bonds has exceeded our expectations, which is very gratifying, especially considering what is happening in the world today. All this, of course, testifies to the very high credibility of our company and the high professionalism of Galt & Taggart," said Eldar Akhvlediani, general director of the Georgian Leasing Company.
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.
44​ GEORGIA Country Report ​December 2020 ​ ​www.intellinews.com