Washington, D.C./Tbilisi, Georgia, February
17, 2015—IFC, a member of the World Bank Group, today issued a 30
million Georgian lari bond – equivalent to approximately $15 million –
to support Georgia’s capital markets. This is IFC’s first local currency
issuance in Georgia.
The bond, named Iveria after an ancient kingdom based in present-day Eastern
is part of a 200 million lari bond program and creates a pricing benchmark
for future IFC issuances in Georgia’s domestic capital markets. Under
the program, IFC can issue lari-denominated bonds when market opportunities
align with the funding needs of the country’s private sector.
“The IFC Iveria bond is an essential part of IFC’s strategy to support
Georgia’s capital market development,” said Jingdong Hua, IFC Vice President
and Treasurer. “Deep, liquid capital markets are the foundation for sustained
economic growth because they efficiently channel investment to key sectors
such as infrastructure and housing, which in turn generate jobs and growth.”
Giorgi Kadagidze, the President of the National Bank of Georgia, said:
“The IFC bond
marks an important milestone in the partnership between Georgia and IFC.
It signals a strong vote of confidence in the outlook for Georgia amid
market volatility. We hope it will pave the way for other high quality
issuers to come to Georgia’s domestic capital markets.”
Galt & Taggart, the wholly-owned investment arm of Bank of Georgia,
acted as the arranger for the bond. IFC has issued bonds in 16 local currencies,
including the Armenian dram, Brazilian real, Chinese renminbi, Indian rupee,
and Nigerian naira.
Georgia became an IFC member in 1995. Since then, IFC has invested more
than $810 million in 60 projects across various sectors and supported regional
projects developed in the country. IFC has also implemented a number of
advisory projects focused on the development of the private sector.
IFC Iveria Bond Summary Terms and Conditions:
Issue amount: 30 million Georgian lari (approximately $15 million)
Pricing date: February 17, 2015
Settlement date: February 17, 2015
Maturity date: February 17, 2017
Coupon Frequency: Semi-annual
Repayment: Bullet on maturity date
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.