POST Online Media Lite Edition



 

Bank of Georgia against dollarisation with $100m offering

Staff Writer |
Bank of Georgia announced that its operating subsidiary, JSC Bank of Georgia, has successfully priced an inaugural $100m offering of 11.125% additional Tier 1 capital perpetual subordinated notes.

Article continues below




Bank of Georgia said the notes would be callable after 5.25 years and on every subsequent interest payment date, subject to the prior consent of the National Bank of Georgia.

Bank of Georgia explained the notes were being issued in accordance with 'Regulation S', and sold at an issue price of 100.00%.

Bank of Georgia said the notes were expected to be listed on the Irish Stock Exchange, and to be rated B- by Fitch.

On closing, the issuance was expected to be the first international offering of additional Tier 1 capital notes from Georgia and the South Caucasus region.

"I am delighted that Bank of Georgia has issued the first ever additional Tier 1 capital notes from Georgia and the South Caucasus region," said chief executive officer Archil Gachechiladze.

"Basel III regulations recently introduced in Georgia enable this type of capital optimisation and this US dollar issue provides the bank with an opportunity to diversify our capital structure from a foreign currency perspective, and provide a natural hedge against dollarisation in the economy."


What to read next

Georgia sold $685 million in bonds
Film industry generates $6 billion for Georgia's economy
Georgia saw fourth record year in international trade