Posted: 8 months ago

Rico Express Successfully Places ₾100 Million in Bonds with TBC Capital's Support in First Market Entry

Microfinance organization Rico Express has successfully issued and placed 3-year bonds in the amount of 130 million GEL, with the support of TBC Capital. The credit portfolio secured bond has seen an investment of 100 million GEL, with the remainder to be invested according to the company's liquidity needs.

The bond issuance marks Rico Express' first entry into the market. The interest rate of the bond is set at TIBR + 2.0%, which is the lowest rate for corporate securities in national currency on the local market in Georgia. The credit rating of the company by Scope Ratings has been assessed at the B+ level with a stable outlook. The legal advisor for the placement was BLC Law.

The bond issuance has allowed Rico Express to mobilize 100 million GEL, which will be used to refinance existing bank loans. The main investors of the bond issue are commercial banks, and the bond will be pledged in the National Bank of Georgia. This will give investors, including commercial banks, the opportunity to attract additional GEL resources at an affordable price.

The success of Rico Express in issuing bonds at the lowest corporate securities rate in Georgia highlights the growing interest in the Georgian capital market, which is increasingly attractive to investors. As the market continues to evolve, it will provide opportunities for businesses to mobilize funds and expand their operations, contributing to the growth of the economy.