Georgian Railway places Eurobonds worth $500 million

Business Materials 29 June 2012 14:39 (UTC +04:00)

Georgia, Tbilisi, June 29 /Trend N.Kirtzkhalia/

JSC Georgian Railway has placed Eurobonds worth $500 million with maturing period in 2022 on June 27, the company said on Friday. It is stated in the information that the coupon rate is 7.750 per cent. The papers were sold at a price of 99.998 per cent of par to yield 7.75 per cent.
The Bank of America Merrill Lynch, JP Morgan and Goldman Sachs organised the placement. Eurobonds are listed on the London Stock Exchange.

The purpose of registration is the financing of the redemption of Eurobonds for 2010-2015 and the payment of dividends for 2011.

On May 17 the government of Georgia decided to place no more than 25 per cent of the ordinary shares of the Georgian Railway on the London Stock Exchange. However, this process was postponed several times due to the unfavourable international economic and financial background.