BAKU, Azerbaijan, Apr.7
By Tamilla Mammadova – Trend:
The deadline for repayment of 10-year Eurobonds in the amount of $500 million expires on April 12, 2021 in Georgia, Trend reports via Georgian media.
As reported, these Eurobonds were placed on the international market in 2011, with the aim of refinancing bonds taken by the government in 2008.
The time has come for covering this debt that will be refinanced with new bonds. New bonds are issued for a period of 10 years, but this is only preliminary data - the final parameters depend on the market situation and the demand among potential clients. The maturity of the bonds can be less than 10 years.
On February 26, 2021, the Ministry of Finance instructed investment banks to start issuing Eurobonds. To sell them, 10 international investment banks and funds were selected, including leaders of the global stock market as JP Morgan, Goldman Sachs, and ICBC. At this stage, work is underway to place bonds on international stock exchanges and, according to available unofficial data, a special statement will be made in the coming days.
The Ministry of Finance also intends to put the bonds up for sale on the domestic market and involve Georgian investment companies Galt & Taggart and TBC Capital.
"According to preliminary calculations, the interest rate on bonds will be 4 percent per year, but this is not a final decision yet," said Mary Chachanidze, Managing Director at Galt & Taggart.
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