The World Bank’s International Finance Corporation said on Friday it had invested 108.3 million lari ($45 million) in Bank of Georgia’s first local-currency bonds sold outside Georgia, in a move intended to help attract investment in the country’s private sector.
Bank of Georgia, the country’s biggest bank by assets, priced 500 million lari worth of three-year lari-denominated bonds at 11 percent on May 25.
The Reg S/ Rule 144A senior unsecured notes are being issued and sold at a price of 100 percent. J.P. Morgan and Renaissance Capital acted as joint bookrunners. The issuance has attracted 500 million lari from about 20 international investors.
The IFC said that the issuance would allow the country’s leading bank to increase long-term local currency financing, which enables businesses to grow and avoid risks related to borrowing in a foreign currency.
The issuance will also support the country’s effort to reduce its reliance on foreign currency, the IFC said in a statement