Silknet Raises $200 Million in Eurobond Issue

JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).

The Notes were subscribed by investors from a wide range of geographies. The Notes are expected to be rated B1 by Moody’s and B+ by Fitch, in line with Silknet’s long-term issuer credit rating.

The Notes are expected to be listed on the Global Exchange Market of Euronext Dublin. J.P. Morgan, UBS and TBC Capital are acting as the joint lead managers. Dentons UK and Middle East and Dentons Georgia are acting as the legal advisors to Silknet, while Latham & Watkins and BGI Legal are acting as the legal advisors to the joint lead managers.

George Ramishvili, Chairman of Silknet’s Supervisory Board and Founder of Silk Road Group, Silknet’s parent company, said:

“Today’s placement reflects the strength and the potential of Silknet, one of the only companies with a truly comprehensive communication and entertainment offer for consumers and businesses. Developing Georgia’s infrastructure through Silknet is an important part of Silk Road Group’s mission to establish Georgia as the bridge between East and West.”

David Mamulaishvili, Chief Executive Officer, Silknet, said:

“Investors taking advantage of this issuance will benefit from unrivalled exposure to Georgia, the former CIS’s most promising success story for its entrepreneurial business environment. Indeed, Georgia is ranked 6th in the World Bank’s most recent ‘Ease of Doing Business’ index. Silknet is one of Georgia’s leading telecoms companies with a comprehensive offering and a truly national customer footprint”

Silknet benefits from brand recognition, customer loyalty and leverage as an integrated telecommunications provider. The company combines infrastructure, including mobile and fixed networks, and services including entertainment and broadcasting platforms, as well as exclusive content rights.