Tegeta" Completes a Landmark $30 Million Multi-Currency Bond Program with "Galt & Taggart" Support
Tegeta," backed by financial services firm "Galt & Taggart," has triumphantly concluded a multi-currency bond program valued at USD 30 million. As the exclusive arranger, Galt & Taggart played a pivotal role in this transaction, marking the first-ever multi-currency and Euro corporate bond issuance in Georgia.
"Tegeta" orchestrated the $30 million program across three separate issuances. In April 2023, the company debuted with a 2-year bond issuance of 20 million US dollars and 5 million euros. Following up in December, it successfully placed an additional 2-year bond of 4 million euros. The dollar-denominated bonds carry an annual fixed interest rate of 8.50%, while the Euro bonds are set at 7.00%. The funds raised were strategically used to refinance the holding's existing bank loans, significantly improving the financing conditions, maturity, and liquidity profile of the company's obligations.
Galt & Taggart served as the exclusive placement agent for the entire foreign currency bond program, distinguishing itself as the sole investment bank to introduce Euro-denominated bonds to the local market.
The investment program garnered substantial interest, particularly for the Euro bond offerings, attracting up to 194 Georgian and foreign individual investors—80 of whom invested in Euro bonds—indicative of a diversified investor base.
"Tegeta," a prominent capital market player, has now completed its sixth security issuance. Vakhtang Kacharava, Executive Director of "Tegeta Holding," remarked, "Our securities experienced market demand that doubled the offered volume, reflecting strong investor confidence and optimistic projections for the company's future. Aligning with our strategy to expand our international market presence, we placed securities in foreign currency."
Levan Shavkatsishvili, General Director of Galt & Taggart, expressed pride in partnering with Tegeta for Georgia's inaugural multi-currency bond program and facilitating the successful issuance of the country's first Euro-denominated corporate bond. "We look forward to continuing our partnership with Tegeta and spearheading more innovative market transactions. Our aim is to refine and diversify competitive financing structures for businesses," he said, hinting at the introduction of new and exciting financial products for investors and companies in the near future.