Georgian Healthcare Group (GHG) has executed the largest local issuance of GEL-denominated bonds in the history of the Georgian capital market, placing bonds worth 350 million GEL. The transaction was facilitated with the support of TBC Capital and Galt & Taggart.
The interest rate for the bonds was set at the daily non-cumulative complex TIBR + 3.75% for a term of 5 years. The securities are planned to be admitted to the Georgian Stock Exchange.
The issuance has been granted the status of social bonds. Accordingly, the company will use the raised funds to finance social projects and refinance existing loans.
There was high demand for Georgian Healthcare Group’s securities from investors. Participants in the issuance included local commercial banks, the Pension Fund, and international financial institutions such as the International Finance Corporation (IFC) and the Asian Infrastructure Investment Bank (AIIB).
“The first collaboration between TBC Capital and Georgian Healthcare Group was a success. I am delighted that together we were able to execute the largest GEL-denominated local issuance in the history of the Georgian capital market. Interest in Environmental, Social, and Governance (ESG) bonds is growing in the country, and TBC Capital is actively involved in this. It is a priority for us to support projects that are not only interesting for investors but also contribute to the sustainable growth of the economy. I am confident that this large-scale social bond issuance by Georgian Healthcare Group will set a new standard in the local capital market and pave the way for similar transactions in the future,” said Otar Sharikadze, Director of TBC Capital.
“We are pleased that, together with Georgian Healthcare Group, a new historic transaction has been completed on the local capital market. This transaction shows how much investor interest is growing in social and sustainable financial instruments and once again highlights the capabilities of the local capital market. The high investor interest in this transaction is a clear confirmation of confidence in the company’s stability and long-term development. Galt & Taggart’s priority is to support projects that create a long-term effect for both investors and the country’s economy. We believe that we will continue to implement many important and interesting projects with Georgian Healthcare Group in the future,” said Ketevan Toidze, Deputy CEO of Galt & Taggart.
“This is an important transaction for both our company and the country’s capital market. It is the first time that a GEL bond issuance of this magnitude has been executed. I would like to extend special thanks to our partners – Galt & Taggart, TBC Capital, the Pension Fund, international financial institutions, and local banks. The high investor interest is noteworthy, as it underscores our company’s stability and our efforts focused on sustainable development. The raised funds will be directed toward developing medical services and refinancing existing loans, which will make our operations even more efficient. Georgian Healthcare Group will continue to be an organization that sets new standards and contributes to strengthening the country’s economy,” said Irakli Gogia, Director of Georgian Healthcare Group.
Georgian Healthcare Group is the largest provider of healthcare services in the country, offering the widest range of inpatient and outpatient services to the population. Georgian Healthcare Group operates in 4 main areas and unites: 50 public hospitals and polyclinics, the largest laboratory in the South Caucasus, and nearly 4,000 doctors across the country.
