On May 29th Courtyard Marriot hosted a joint press conference of FINCA Bank Georgia and PASHA Bank.
The main subject of the press conference was the bond worth GEL 20,000,000 that FINCA Bank Georgia plans to issue with a 3-year tenor. FINCA Bank Georgia intends to place 200 obligations, each with the nominal value GEL 100 000 with annual interest rate of 10, 1% paid semiannually.
The issuer, FINCA Bank Georgia, plans to use proceeds from the issue of the bonds for the purpose of financing and expenditure of the lending operations to micro and small enterprises in local currency. This will enable its customers to protect themselves from currency risks.
PASHA Bank enjoys significant experience in securities underwriting in its home market, Azerbaijan, and plans to actively contribute to the development of the Georgian capital markets.
The deal has very important distinguishing characteristics such as:
- The bonds are to be issued in GEL
- The deal participants are two non-IFI (International Financial Institution) companies
- The volume of the bond issue amounts to GEL 20,000,000
“The proceeds of the bonds to be issued in local currency will enable FINCA Bank Georgia to respond to current market challenges and make Lari funding available to its customers. The issue will also positively contribute to the development of local bond market. Worthwhile to mention that this deal is historically the biggest GEL bond issue without IFI participation,” noted Vusal Verdiyev, the CEO of FINCA Bank Georgia.
“This is our first securities underwriting deal in Georgia and we are already in the process of negotiations with several other interested parties. We believe that there is a tangible potential in Georgia for this business line and we will try to contribute by applying our experience and expertise,” commented Mr. Shahin Mammadov, CEO of PASHA Bank in Georgia.