Nikora Trade Associating with TBC Capital Release Bond of 25 mln GEL

Supermarket network Nikora Trade has released a bond of 25 million GEL, which is the first public bond issued by the company in GEL. TBC Bank's subsidiary "TBC Capital" provided the issue of the bond and put it on the Georgian Stock Exchange. This transaction is the largest of its kind for this period of 2018 in the GEL corporate public bond segment. The main benefits imply refinancing loan bonds and funding monetary resources for future development. The three-year obligations are listed on the Georgian Stock Market. The interest rate is 11% and the term of coverage until 2021. Various financial institutions have invested in bond issuance, including local banks and the European Bank for Reconstruction and Development (EBRD).

On September 14, a press conference was held in TBC Bank’s headquarters, where the key speakers, General Director of “Nikora” Irakli Boqolishvili, Assistant of TBC General Director Goga Tkhelidze, Director of “TBC Capital” Irakli Elashvili and EBRD Director in the South Caucasus, Bruno Balvanera, introduced the project and the leading processes to the audience.

Nikora Trade is a company which has released coupon bonds worth $5 million since 2016. International rating company Scope Rating awarded B+ to Nikora and BB- to released bonds in 2017, proving its strength and transparency.

“Experience gave us the opportunity to release 25 million three-year coupon bonds because they are an alternative way to attract financial resources. The more diversified the funds, the better conditions the company has. Why Lari? Because in the current currency situation in Georgia, GEL is less risky. Half of the mentioned 25 million bond will go towards refinancing obligations and half of it will be used for developing the Nikora network,” said Boqolishvili.

The assistance of the EBRD, the leading institutional investor in Georgia, didn’t go underestimated at the meeting. It has invested in 223 projects in the financial, corporate, infrastructural and energy sectors.

“This partnership is important for EBRD for several reasons: 1) because we see potential and demand in the Georgian market, 2) From now on, Nikora will have to be transparent as much as possible and accountable in finance, and 3) Part of our financing will be used for environmentally friendly products, which will contribute to the company’s role in the global warming sphere. The EBRD is interested in environmental protection,” noted Balvanera.

The conference was summed up by TBC Bank, with its representatives talking about their experience with Nikora, connections between investments and currency diversification, the priority of the Lari, and about why this project stands as an example for other Georgian companies.

By Mariam Merabishvili