Nikora JSC has placed bonds in the amount of 35 million GEL with the assistance of TBC Capital and Galt & Taggart
With the assistance of TBC Capital and Galt & Taggart, JSC Nikora has successfully placed 3-year bonds as Public Issue in the amount of 35 million GEL.
The bonds were placed on the Georgian Stock Exchange in the national currency, which allows the company to avoid currency risks. Nikora will use the proceeds from the placement of bonds in order to refinance existing liabilities and finance plans for the company's further development.
Bonds with 100% par value were fully placed. Their annual interest rate was determined by adding 3.5% to the three-month interest rate of the Tbilisi Interbank Lending Rate (TIBR3M).
The company received a credit rating from Scope Ratings and it was defined as BB- level.
This bond transaction is the 6th successful placement of Nikora Group on the local capital market.
Investment in the issue was implemented by Pension Agency that represents the first domestic corporate securities that is has purchased so far.
High interest was expressed in regards with the bonds from the financial institutions, and placement was completed in short terms. Similar to other public bonds issued in Georgian Lari, these bonds can be used as collateral at the National Bank of Georgia, which enables investing commercial banks to gain additional resources in GEL at an affordable price.
Nikora, together with partners, has been actively working to develop diversified sources of raising financial resources for years and successfully carries out operations related to securities. Every time the interest is very high. It is important that for the first time in Georgia, Pension Agency has invested in Nikora bonds, which is proof of the great confidence in our company. And each time, the interest expressed is very high. “It is important that for the first time in Georgia, Pension Agency has invested in Nikora bonds, which is proof of the great confidence in our company. Nikora has an international credit rating (BB- with a stable outlook), which is the best assessment for the company in terms of reliability and financial transparency as well. The issue of securities allows us to use the attracted resources for the development of the company itself, which is an important prerequisite for creating new jobs. We thank all the participants for their participation and successful activities,” says Irakli Bokolishvili, Director General of Nikora JSC.
We have been cooperating with Nikora Group since 2017. This 5th issue, placed with the participation of TBC Capital, is a clear example of our successful partnership and another step forward in the development of the local capital market. It should be noted that out of 5 issues 2 were placed by Nikora Trade JSC and 3 by Nikora JSC. We are also glad that with the assistance of the Pension Agency, the capital market, we supported to find alternative sources of financing. It is important that TBC Capital is actively involved in the placement of local bonds, thereby helping Georgia to be an attractive country for both local and foreign capital,” said Mary Chachanidze, Managing Director of TBC Capital.
“I am pleased to note the role of Galt & Taggart in the placement of Nikora Group bonds and congratulate the company on another successful placement, which indicates the high confidence of investors in Nikora Group.” It is noteworthy that by participating in this transaction, the Pension Agency for the first time invested in corporate debt securities issued on the Georgian market. In their form, another strategically important institutional investor has been added to the local capital market. We hope that there will be a number of similar transactions in the future, which is probably to be especially important for bond issues in GEL. Together with our colleagues, I would like to congratulate the entire Galt & Taggart team on another success. Galt & Taggart has been effectively cooperating as an investment bank in the Georgian market for many years, both with various representatives of the private and public sector, and with international financial institutions," said Otar Sharikadze, Managing Director of Galt and Taggart."
“First of all, I would like to congratulate Nikora on another successful issue, which testifies to the company's sustainable development and high confidence from the invsetors. I would like to thank the teams of Galt & Taggart and TBC Capital for such an efficient work and successful completion of this placement as well. We are pleased to have taken part in the placement of Nikora bonds, which primarily serves the interests of our participants. This is our first investment in the local corporate bond market, which we always monitor and, as expected, see its activity, especially in terms of new issues. We hope that this successful placement and our participation in it will become a certain incentive for new local issues, which will allow us to successfully invest pension savings in securities of Georgian companies and will contribute to the development of the local capital market," said Goga Melikidze, senior investment officer of Pension Agency.