Georgia Healthcare Group plc

11/07/2019 | Press release | Distributed by Public on 11/07/2019 01:52

GHG’s hospitals business issues GEL 50 million bonds with historically low margin on Georgian market

Georgia Healthcare Group PLC ('GHG'), announces that its hospitals business, JSC Evex Hospitals ('Evex Hospitals'), has completed the public placement of GEL 50 million unsecured local bonds due 2024 (the 'Bonds') on the Georgian market. JSC Galt & Taggart acted as a lead manager for the Bonds. The Bonds were priced at an issue price 100% of their principal amount on 6 November 2019. They carry a floating coupon rate of 310 basis points premium, being the historically lowest margin floating rate among corporate bond issuances on the Georgian market, over the National Bank of Georgia Monetary Policy (refinancing) Rate. The proceeds will be used to refinance more expensive borrowings.

'I am delighted that Evex Hospitals has successfully completed another landmark transaction, the placement of bonds with the lowest margin that any corporation has ever done in Georgia. The transaction was met with considerable interest from investors, with a key investor being the European Bank for Reconstruction and Development ('EBRD'), demonstrating our superior access to capital. The issuance of bonds helps us to further decrease our cost of funding, contributing to the healthy growth of the business. I also want to thank the Galt & Taggart team, our long-standing partner, for their support throughout the process,' commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.

Catarina Bjorlin Hansen, EBRD Regional Director for Caucasus, said: 'This is our fourth transaction with Evex since 2016, when EBRD provided financing facility for renovation and refurbishment of a hospital in Tbilisi. We are delighted to be part of this important deal, contributing towards the development of more efficient and deeper local currency capital markets. The transaction sends a strong signal that bonds are a viable source of local currency funding for the private corporate sector.'