Georgia to Receive 15 mln EUR in Aid from EU Bond Issuance

The European Union has announced plans to issue bonds to raise funds as aid for Georgia and Ukraine, reports Reuters. Georgia will receive 15 million EUR in aid and Ukraine will receive 500 million EUR.

The bonds are the EU's outstanding April 2033 euro bonds. “When we go to the market to raise funds, we link it directly to the beneficiary, which explains why we are going to market now in the first week of December,” explained an anonymous EU official. 

Issuance of the bonds will end on December 11. The bonds are issued under the organization of: Commerzbank, Goldman Sachs, LBBW, and TD Securities.

"The lending terms to Ukraine and Georgia will have the same maturity and coupon as the EU bond deal. That would represent a substantial saving for Ukraine compared with its own borrowing costs in the bond market," says Reuters. 

The loan to Ukraine will be attached to specific economic policy conditions, but will not be restricted to a particular project or purpose, said the EU official.

By Samantha Guthrie

Photo: Yahoo