Cellfie Mobile's Successful Debut Bond Placement Raises ₾65 Million with Galt & Taggart and TBC Capital's Aid
Cellfie Mobile, a leading Georgian mobile operator catering to over 1.3 million subscribers, has triumphantly placed secured bonds worth 65 million GEL. This significant financial move was facilitated by Galt & Taggart and TBC Capital, serving as the placement agents.
The bonds, set with a 3-year maturity, feature an annual interest rate pegged at 6-month TIBR plus 3.5%. Notably, these bonds are backed by both the immovable and movable assets of the company, marking Cellfie Mobile’s inaugural foray into the capital market.
In October 2023, Cellfie Mobile garnered a BB- credit rating with a stable outlook from Scope Ratings, a German agency. This distinction, the highest for the telecommunications sector in Georgia, fueled robust demand for the company's bond placement. The issued securities attracted major Georgian commercial banks and the Georgian Pension Agency as buyers.
The capital raised from this bond issue is earmarked for settling existing liabilities and enhancing Cellfie Mobile’s network infrastructure. Additionally, the funds will support the company’s ongoing endeavors to deploy 5G technology, following its successful bid in the Communications Commission's auction held in August of the same year. The overwhelming response to SELF’s bonds reflects the company’s strong market position, profitability, and promising growth trajectory.
Tamar Gakharia, Financial Director of Sibie Group, expressed gratitude for the successful transaction, highlighting the collaborative efforts of Galt & Taggart, TBC Capital, and the internal teams at Sibie Group and Cellfie.
Levan Shavkatsishvili, Managing Director of Galt & Taggart, shared his pleasure in supporting Cellfie Mobile’s achievement of an industry-leading credit rating and successful bond issue, noting the favorable terms and diverse investor base this facilitated.
Mary Chachanidze, Managing Director of TBC Capital, also expressed satisfaction with the role TBC Capital played in supporting Cellfie Mobile's debut bond issue. The bond issue not only diversified the company's financial resources and improved its interest expenses but also paved the way for significant future capital expenditures, ensuring ongoing business growth and enhanced customer experience. The robust demand for the bonds, surpassing the issue volume by about 25%, underscored TBC’s longstanding and successful partnership with CBS Group. Chachanidze also highlighted TBC Capital’s leadership in the market, with Cellfie Mobile’s bond being the 16th placement managed by TBC Capital within the year.