Posted: 2 weeks ago

IG Development Georgia, Backed by Galt & Taggart, Successfully Issues $19.5 Million in Bonds

IG Development Georgia, with the assistance of Galt & Taggart, has successfully issued bonds totaling $19.5 million. The initial volume of the transaction was set at $15 million; however, due to high demand from investors, the volume increased by $4.5 million. This issue marks the largest public transaction carried out in 2024.

IG Development Georgia owns and manages large-scale multifunctional shopping centers such as City Mall Saburtalo, City Mall Gldani, and City Tower. This transaction represents the company’s fifth issuance in the Georgian market, all of which have been executed exclusively with the help of Galt & Taggart. IG Development Georgia is a pioneer in the Georgian corporate sector for initiating bond offers through a program that simplifies the procedure, allowing for multiple offerings within a year.

In December 2023, IG Development Georgia, exclusively with Galt & Taggart's support, approved a $45 million program. Within this framework, it completed transactions of $20 million in December 2023 and €5 million in January 2024. This transaction marks the first public offering of 2024.

The fixed interest rate for the new $19.5 million bonds, similar to the previous issue, was set at 8.50%. The term of the bonds is two years, with full repayment due on July 8, 2026. The bonds were purchased by 125 individuals and legal entities, both Georgian and foreign. Of the total bond amount, $15 million is allocated for refinancing the bonds placed on July 7, 2022, with the remainder directed towards existing bank loans.