Galt & Taggart and PASHA Bank Underwrite GWP’s 6,000,000 GEL Bond Issue

On December 10th, GWP issued 6,000 bonds with nominal value of GEL 1,000 each, the placement agents and underwriters being PASHA Bank Georgia and Galt & Taggart. The bonds have a two year tenor with quarterly coupon payments. Coupons are referenced on the National Bank of Georgia refinancing rate and carry a margin of 7.5% over the reference rate. At present the annual interest rate of the bonds is 15%.

“The fact is that for the time being more financial institutions express willingness to invest in our company as the company’s credibility has increased, which is confirmed by Fitch rating assigned to GWP recently,” Giorgi Tskhadadze, CEO of Georgian Water and Power, stated.

“Diversification of credit resources is of vital importance for Georgian Water and Power in the mid-term and long-term perspective. For GWP it is a second round of bonds emission for the amount of GEL 6 m now, to be placed in full. The first placement of bonds for GEL 2,6 m was effected in August of current year. New management of GWP is willing to cooperate with various financial institutions and funds to implement the projects significant for the company’s development,” Giorgi Vakhtangishvili, CFO of Georgian Water and Power, pointed out.

“PASHA Bank enjoys significant experience in securities underwriting in its home market, Azerbaijan, and we plan to apply this expertise in Georgia and actively contribute to the development of the local capital markets. In May, PASHA Bank arranged FINCA Bank Georgia’s GEL 20,000,000 bond issue and we are glad to be partnering with GWP and Galt & Taggart this time. We took this opportunity to extend our partnership with GWP, in March, 2015 PASHA Bank issued the term loan facilities to Georgian Water & Power and Rustavi Water Company with the combined principal of GEL 22.5 million,” commented the CEO of PASHA Bank Georgia.

“We are glad that with the help of Galt & Taggart, the bond issue of one more Georgian company was accomplished. Galt & Taggart has already contributed to the issuing of over GEL 100 mln worth of local bonds, supporting the development of local capital markets and creating access to the financial recourses that are very important to the growth of the companies. Thanks to its team of professionals and the experience Galt & Taggart has become a leading company in Georgia providing investment banking services. I would like to thank everyone who worked on this deal and wish success to GWP,” Archil Gachechiladze, commented the Chairman of Supervisory Board of Galt & Taggart.