Georgia Begins Early Redemption of $500 Million Eurobond, Prepares New Issuance
The Government of Georgia has launched the early redemption process of a $500 million Eurobond originally issued in 2021 and scheduled to mature in April this year.
Alongside the buyback operation, the government is also preparing the placement of a new $500 million Eurobond, with offers already sent to investors. The final interest rate of the new bond is expected to be determined in the near future.
According to the official statement, the government plans to complete the redemption of the Eurobond originally maturing in April 2026 by January 28, 2026.
Several global financial institutions are involved in providing brokerage services for the transaction, including Citigroup, J.P. Morgan, ICBC, and Société Générale. On the domestic market, brokerage services are being provided by Galt & Taggart and TBC Capital.
The existing five-year, $500 million Eurobond currently being redeemed was issued with a 2.75% coupon rate. The interest rate on the new bond has not yet been finalized, as the placement process is still ongoing.
However, market expectations suggest that the new Eurobond’s yield is unlikely to fall below 3.82%, which reflects the current yield on five-year U.S. Treasury bonds. The difference between U.S. Treasury yields and the Eurobond yield—known as the spread—is expected to remain within 1.5–2 percentage points. As a result, Georgia is widely expected to place the new $500 million Eurobond at a yield ranging between 5.3% and 6%.
Commenting on the issue in November 2025, Georgia’s Finance Minister Lasha Khutsishvili stated that investor interest in the upcoming issuance is strong, though the interest rate will not be as low as it was during the 2021 placement.
“This assessment is based on investor feedback, strong interest, and numerous meetings held regarding Georgia’s securities,” Khutsishvili said. “It is also supported by Georgia’s economic conditions and the progress the country has made, which allow for the issuance of securities with a lower risk premium. We expect demand to be two to three times higher than the volume of the bond. The interest rate will not be the same as it was four to five years ago, but the risk premium added to the base rate will be significantly lower than in 2021. We will see the final figure in three to four months.”
The minister made the remarks during a plenary session of parliament, where discussions on the 2026 state budget were underway.
