EU and EBRD Back Historic Placement of 25 Million GEL Social Bonds on Georgia's Capital Market

The European Union and the European Bank for Reconstruction and Development (EBRD) have announced their support for the issuance of social bonds worth 25 million GEL by "JSC Microfinance Organization Crystal", marking the first placement of social bonds on Georgia's capital market.

The funds raised from the gender bond will be used to finance loans for small and medium-sized businesses owned by women entrepreneurs. The aim is to enhance access to innovative finance and expand the company's credit portfolio for its target customer segment, including in the regions of Georgia.

The winning company, "JSC Microfinance Organization Crystal," will receive significant financial assistance from the European Union to ensure co-financing of the costs related to the bond issue. The program is implemented by Galt & Taggart and BDO Georgia and aligns with the program's strategic objectives, including promoting the development of local capital markets and supporting environmental, social, and governance (ESG) issues and values.

"I am pleased to note another important achievement for Crystal and the Georgian capital market of 25 mln. By placing Lari certified social bonds, the aim of which is to support gender equality and women's empowerment. At the same time, we are very happy with the victory in the capital market support program, which is implemented with the financial assistance of the European Union and the support of the European Bank for Reconstruction and Development (EBRD). The program gave us an incentive to create another success story for Georgia's leading financial inclusion organization," says Ilia Revia, CEO of Crystal.

The offer closed on February 8, 2023, and the bonds are denominated in GEL, with a maturity of two years, a bullet structure, and a coupon rate of TIBR6m+4.75%. The bonds were placed and sold at par value.