Baku, Azerbaijan, July 13
By Tamilla Mammadova - Trend:
The Asian Development Bank (ADB) raised 60 million GEL from two new issues of local currency bonds auctioned today in Georgia, Trend reports via the website of Asian Development Bank.
“ADB is committed to promoting local currency bond markets. These bond issues not only deliver local currency funding for ADB’s private sector operations, but also maximise our development impact by supporting the deployment of cutting-edge financial market infrastructure in Georgia”, said ADB Treasurer Pierre Van Peteghem.
This dual-tranche bond issue is ADB’s third offering in the domestic Georgian capital market since the institution’s inaugural fundraising in 2015. The bonds are equally sized in tranches - 30 million GEL of three-year tenor and 30 million GEL of five-year tenor.
The proceeds of the bond issues will be on-lent to Credo Bank to launch new products including home improvement and mortgage loans to lower income households in rural areas and on the outskirts of Georgian capital, Tbilisi. The two bonds were arranged and underwritten by JSC Galt & Taggart and fully subscribed by institutional investors in Georgia.
For the first time, ADB issued bonds via public subscription and auction through the Georgian Securities Settlement System (GSSS). The new GSSS system was implemented by the National Bank of Georgia in December 2018 and allows for riskless, fast, and safe settlement of securities transactions with central bank money, using Real Time Gross Settlement accounts. The ADB bonds are also listed on the Georgian Stock Exchange.
ADB is a regular borrower in mainstream international bond markets but has also led issuance in developing Asian countries as part of efforts to promote domestic bond markets as an alternative to bank lending. In 2019, ADB has issued bonds in Indonesian rupiah, Kazakhstan tenge, and Philippine pesos.
(1 USD = 2,83 GEL on July 13)