Page 49 - GEORptJun22

the evolution of the pandemic and the efficacy of the vaccination rollout, the rating agency said.
Georgia's general government debt is estimated by Fitch to have increased by 20pp in 2020 to 60.4% of GDP, slightly above the median debt ratio of 'BB' peers (59.9% of GDP). Fitch forecast debt to stay around this level in 2021, before declining to 56.5% in 2022.
The economic recovery and commitment by the government to return to its fiscal rule by reaching a deficit below 3.0% of GDP by 2024, will support medium-term debt reduction.
Fitch forecast Georgia's CAD will widen to 12.5% of GDP in 2021, before narrowing to 7.9% in 2022. A domestic-driven recovery and a weak outlook for tourism will mean a higher pace of growth in imports than exports, it added.
8.5 Fixed income
8.5.1 Fixed income - bond news
BSTDB announces $45mn investment in ENERGO-PRO bond issue
The Black Sea Trade and Development Bank (BSTDB) said on February 4 it is investing $45mn as an anchor investor in a bond issuance by ENERGO-PRO a.s.
Czechia-based ENERGO-PRO has operations in Bulgaria, Georgia and Turkey, and the bond will be used for projects that include investments to raise the reliability of power grids in Bulgaria and Georgia.
The total size of ENERGO-PRO’s bond issuance is $435mn. Its investment programme "envisages capital expenditures in particular in rehabilitation and modernisation of the electricity network in Bulgaria and Georgia for households and corporate clients, as well as connecting more clients to electricity network,” according to the BSTDB press release.
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.
49 GEORGIA Country Report June 2022 www.intellinews.com