Posted: 4 months ago

Enterprise in Georgia Embarks on a Revolutionary Phase Offering an Alternative to Traditional Bank Financing" - Mikheil Khidureli

"Enterprise in Georgia is entering an entirely new phase, introducing an alternative to traditional bank financing through the facilitation of securities issuance and the establishment of a private equity fund aimed at supporting small and medium-sized enterprises (SMEs)," announced Mikheil Khidureli, Director of the agency, during a discussion about enhancing the capital market.

The initiative was highlighted in a collaborative session with USAID’s Financial Innovation for Access program, which saw participation from the Ministry of Economy and various brokerage firms. The focus was on a key aspect of capital market development aimed at encouraging securities issuance. In 2024, the agency plans to assist up to 15 companies in issuing bonds, potentially drawing an additional 150 million GEL in investments to the stock market.

Khidureli elaborated on the agency’s new direction in partnership with USAID’s financial innovation efforts. "The Georgian government has long facilitated access to financial resources for businesses. It's exciting that Enterprise in Georgia is advancing to include capital market solutions, soon offering tangible support for securities issuance. This move aligns with the Prime Minister's new initiative, attracting interest from companies keen on securities. We're eager to work alongside USAID’s program to empower entrepreneurs," Khidureli expressed.

This year, alongside bond issue co-financing, which covers credit rating acquisition and placement fees, Enterprise in Georgia will implement several strategies to boost alternative financing mechanisms. This includes nurturing investment funds and promoting asset-based financing, marking a significant stride towards diversifying financial support for Georgian businesses.