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Total stock of outstanding Georgian bonds increases

Finance Materials 30 October 2019 14:34

BAKU, Azerbaijan, October 30

By Tamilla Mammadova – Trend:

The total stock of outstanding Georgian bonds increased by 41 percent year-on-year, and by 32 percent excluding foreign exchange (FX) effect by the end of 3Q2019, mainly on the back of local corporate bonds and Eurobonds, Trend reports with reference to TBC Research Group at Georgian TBC Bank.

Georgia is getting closer to be included in an investment grade rating, which is reflected on the sovereign Eurobond performance as well as increased ownership of local treasuries from non-resident individuals and institutions.

Bringing in new investment opportunities for those with USD appetite, four new Eurobonds from Georgian corporates increased the outstanding stock by 72 percent year-on-year in 3Q2019.

The outstanding amount of International financial institutional (IFI) bonds issued in Georgia, represented by 16 bonds from five IFIs, saw a 24 percent year-on-year increase in 3Q2019.

The value of newly issued local corporate bonds saw a 161 percent year-on-year increase in 3Q2019. Additionally, a $35 million bond by M2 Real Estate and a 28 million lari ($9.5 million) bond by Nikora company were issued in early October 2019.

At end 3Q2019, in total 22 bonds with total nominal value of 2.85 million lari ($967,914) were listed on the Georgian Stock Exchange (GSE).

A new trend of dual-listing has emerged, with three new Eurobonds listed on the GSE at the end of 3Q2019, the TBC research group said.

With the investment council as well as the chief risk officer in place and 351 million lari ($119.2 million) at the end of 3Q2019, the Pension Agency is expected to start investing in plain vanilla financial instruments from the beginning of 2020.

(1 USD = 2.95 GEL on October 30)

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