Georgian Beer Company Carried out Public Bonds Emission of 25 Million GEL with the Help of TBC Capital
The leader of beer and non-alcoholic beverage manufacturer “Georgian Beer Company” has carried out an obligations’ emission of 25,000,000 GEL worth, which is one of the largest transactions in the corporate public sector segment in 2018.
The bonds were made through public emission and is the first bond issued by the company. TBC Bank’s subsidiary Broker company TBC Capital provided the issue of bonds.
Investments in bonds were made by resident and non-resident institutional investors (banks, insurance companies, international financial institution), and bonds were issued on the 26th of December, 2018 in A category listing of the Georgian Stock Exchange. The European Bank for Reconstruction and Development (EBRD) has purchased a significant portion of the Bonds and it is worth noting that this is the second investment in EBRD listed in lari bonds.
“2018 was quite interesting for the company. “Georgian Beer Company” managed to issue 5 year bonds on the Georgian Stock Exchange. Overall, we have issued 25 million Lari Bonds, which means that investors have a very high level of trust towards the company – which is expressed in the correct view of the company’s strategic development, as well as a healthy and stable financial condition. “The Georgian Beer Company” will move to a different stage of development, as it has become be a public interest company since January 1, 2019. The Company will be accountable for its own achievements and financial indicators for quarterly or annually with National Bank of Georgia, Stock Exchange and Investors, “said Kakha Kotrikadze, General Director of Georgian Beer Company.
“We are glad that we are working with the leading player of the industry -” Georgian Beer Company “and helping the company to find alternative sources of financing through the capital market. This bond is the first public bond issued in the sectors of beer and non-alcoholic beverages, and a significant step forward is to create future development and financing sources of the entire sector, “said Irakli Elashvili, director of ”TBC Capital”.
Bonds, the total base amount of which is 25,000,000 ) and the accrued interest – 400 basis points (Spread) added to the National Bank of Georgia’s Monetary Policy (Refinance), which expires on 21 December 2023, was released on 21 December 2018, 10,000 GEL as bonds and their redemptions will take place on December 21, 2021. The company will use the funds attracted from bonds in two directions: 1) Financing of capital expenses 2) Refinancing existing bank loans.
“Georgian Beer Company” cooperates with TBC Group since its foundation. Since 2011, a number of interesting projects have been implemented with TBC Bank, along with the main financial partner. 2018 was particularly important for diversification of financing sources for the company. TBC Bank and EBRD have financed the company that attracted foreign funds significantly. By the issuance of bonds, Georgian beer company has received a long-term resource in GEL, which reduces currency risk to the company.