Georgia Healthcare Group PLC on Monday said its healthcare services business has completed a private placement of GEL90.0 million of local bonds due in 2022.
Healthcare unit JSC Evex Medical Corp placed the local bonds at an issue price matching their principal amount last Wednesday. The bonds carry a floating coupon rate of 350 basis points premium over the National Bank of Georgia monetary policy refinancing rate.
“The proceeds will be used to refinance borrowings from local commercial banks, which are a relatively more expensive source of funding, and also to fund planned ongoing capital expenditures,” said the company.
“I am very pleased that Evex has completed another landmark transaction demonstrating our superior access to capital. I am glad that the transaction was met with considerable interest from investors, and we completed the largest private placement of any corporate (other than commercial banks) in local currency ever done in Georgia. The issuance helps us to further build a longer-term, less expensive funding profile and contributes to the successful implementation of our strategy,” said Nikoloz Gamkrelidze, chief executive of Georgia Healthcare Group.
Georgia Healthcare shares were untraded on Monday, having last traded at 375.50 pence.