Page 50 - GEORptJul22

Georgia’s telco Silknet successfully refinances $200mn Eurobond
The development added that it will contribute to improving ENERGO-PRO’s environmental and social performance by strengthening its environmental and social management system and expanding it to more sites in the three Black Sea countries, as well as by developing comprehensive stockholder engagement plans, and increasing adaptability of its power generation to climate change.
“We are pleased to support ENERGO-PRO in promoting renewable energy production and security of energy supply across the Black Sea region. As a regional development bank, we prioritise promoting co-operation among our member countries and clean energy solutions in the region,” said BSTDB president Dmitry Pankin.
“We very much value our cooperation with BSTDB, and we are very pleased that they decided to participate in our first US dollar Eurobond issue as an anchor investor, which certainly contributed to the success of the transaction,” said Petr Milev, CEO of ENERGO-PRO.
Previously, the BSTDB was an anchor investor in the bond issued by ENERGO-PRO’s subsidiary ENERGO-Pro Varna AD in Bulgaria in 2016. The BSTDB supported the company again as an anchor investor in ENERGO-PRO’s debut Eurobond issue the following year.
Georgia's leading telecommunications company Silknet has successfully raised $300mn in a new bond issue.
Silknet’s previous $200mn Eurobond, issued in 2019, is callable from 2 April 2022.
The move follows an improved outlook from rating agency Moody's and saw a substantial reduction in the coupon rate to 8.375% from 11%, with a comparable yield to other major telecoms operators in the region, such as Turk Telekom, demonstrating the company's strong investment prospects.
“Successful refinancing of bonds is another proof of Silknet and Georgia's investment attractiveness in international markets. I would like to congratulate the Silknet team, each employee, on the successful placement of eurobonds. The company will continue to introduce and develop the best telecommunication services in the country with the attracted funds," said Giorgi Ramishvili, Chairman of the Supervisory Board of Silknet, quoted by Business Media.
The new eurobond will put the company into JP Morgan's CEMBI Index, one of the leading listings of emerging market bonds, for the very first time.
Some 40% of the subscriptions come from the UK, 20% from the US, with 40% coming from Switzerland, European countries and Georgia, Ilia Enukashvili, the head of Silknet's strategic planning service, told Business Media.
"Last year, our rating forecast went negative, while there was uncertainty over the pandemic and also an uncertain regulatory environment in the country. We overcame the pandemic quite successfully and had a pretty impressive economic growth that will continue into 2022. Pretty good forecasts, a stable macroeconomic environment, allowed Moody's to return its credit rating forecast to stable. It was a very important signal for investors, too, who watch this and read the ratings of Moody's and Fitch, and trust that they will conduct an in-depth study of our situation,” explained Enukashvili.
50 GEORGIA Country Report July 2022 www.intellinews.com