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Silknet Issued 34 Million Worth of Bonds

JSC Silknet issued a five-year Bond amount of GEL 34 million in accordance with Georgian Law on Securities Market.

The money received from bonds was spent to refinance relevantly to existed bank credit.

Bonds were purchased by Georgia based banks.

Annual benefit (coupon) of the bonds is variable and makes up to 3.5% of the refinancing rate of the National Bank of Georgia, while the benefit is paid quarterly.

The company plans to sell the bonds on the Georgian Stock Exchange (Listing).

during the issue of bonds, placement and sale agents were: TBC Capital, Silk Road Bank and S. Pierce Advisors, while legal advisor was Dentons.

”Silknet is one of the first Georgian companies and the first telecommunication operator in Georgia, which issued the denominated bonds in GEL. Silknet increases access by issuing public securities on Local and international capital markets, which will enable the company to diversify sources of financing and ensure future growth.We would like to thank our partners and advisors to participate in this important step,”- said Ilia Enukashvili, Head of the Silknet Strategic Development Agency.

JSC Silknet is a leading telecommunications company in Georgia, providing customers with internet, television, fixed telephone and business telecommunication services.

The Fitch Ratings has given a long-term credit rating of B + to company.

According to the data of 6 months of 2017 (Georgian National Communications Commission), Silknet holds 41% of Georgia’s fixed Internet segment, 30% of broadcast transit (pay TV) segment and 48% of fixed telecom segment.