BAKU, Azerbaijan, Dec.1
By Tamilla Mammadova – Trend:
JSC Georgian Stock Exchange (“GSE”) and its subsidiary JSC Georgian Central Securities Depository (“GCSD”) announced that the GCSD has launched debut Georgian Depositary Notes (GeDNs) of JSC Silknet (“Silknet”), a leading Georgian telecommunications operator, linked to $200 million, 5-year 11 percent senior unsecured bonds listed on the Global Exchange Market of Euronext Dublin (“the Notes”), Trend reports via Georgian media.
The GeDN program is a debut depositary instrument issued in Georgia enabling investors to take indirect exposure to Silknet’s Notes. The GeDN prospectus was approved by the National Bank of Georgia and the GeDNs have been listed on the Georgian Stock Exchange. The terms and conditions of the GeDNs mostly match those of the Notes.
The GeDN program is a debut depositary instrument issued in Georgia enabling investors to take indirect exposure to Silknet’s Notes. The GeDN prospectus was approved by the National Bank of Georgia and the GeDNs have been listed on the Georgian Stock Exchange. The terms and conditions of the GeDNs mostly match those of the Notes.
The GeDNs can be converted to the Notes and vice versa by investors through Georgian brokers. Silknet acts as the issuer and the program sponsor, while the GCSD acts as the GeDN depositary. Notes converted to GeDNs are kept at the local custodian in the GCSD’s name.
The $200,000 minimum denomination of the Notes as well as lack of access to foreign brokers and custodians effectively prevents many Georgian investors from directly investing in Eurobonds. Hence, the GeDNs’ $1,000 denomination and the local listing ensures that local retail and institutional investors are now able to indirectly invest in the Notes through Georgian brokers.
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