BG Capital is pleased to announce it successfully completed a GEL 25,000,000 (US$ 14.9mn) private local bond offering at 13.5% over two years for Georgian Railway. BG Capital acted as Bookrunner and Lead Manager on the issue, which is the first corporate bond placement in Georgia in the last two years, and the largest issue ever on the Georgian corporate fixed income market.

The book was oversubscribed by nearly two times, with bids coming in from both international portfolio investors and commercial banks in Georgia.

Georgian Railway intends to use proceeds from the issue to finance the first stage of a large-scale modernization of its main railway line, which includes conducting a Feasibility Study and Technical Design process and the acquisition of a new Chinese-produced passenger train model for test purposes.

Irakli Ezugbaia, CEO, Georgian Railway: “The issuance of the bonds is one of the main steps on our way to modernizing Georgian Railway, and all the more important because it brings the company to the attention of a wider business audience. Along with our partner on the deal, BG Capital, we are glad to have completed such a successful transaction, especially in the face of continued global financial turmoil. It is definitely a positive sign as we continue to transform Georgian Railway.”

Nick Piazza, CEO, BG Capital: “With this deal our team took a leading role in the development of Georgia’s local bond market. The involvement of international portfolio investors reflects Georgia’s growing popularity as an investment destination – investors see and value the steps Georgia has taken to leave the crisis behind, and they are looking to get exposure to the country.”

Goga Melikidze, Managing Director, BG Capital: “We are delighted to close out 2009 with this landmark transaction, and that this deal now clears the debt capital market path for other Georgian issuers. I would like to express my gratitude to Georgian Railway as an issuer for their effective cooperation and wish them further business prosperity in the future.”


For more information on BG Capital’s debt financing deals, please visit the Debt Financing section of our website (Debt Financing), or contact the BG Capital Sales & Trading Desk (Ukraine: +38 044 489 84 01; Georgia: +995 32 444 444).