Issue of Debt

RNS Number : 0426H

Bank of Georgia Holdings PLC

06 July 2012

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES EXCEPT, IN THE CASE OF THE UNITED STATES, TO PERSONS REASONABLY BELIEVED TO BE QUALIFIED INSTITUTIONAL BUYERS (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (AS DEFINED BELOW)), AND IN THE CASE OF OTHER JURISDICTIONS, AS PERMITTED BY APPLICABLE LAW

This announcement does not contain, constitute or form part of any offer or invitation to sell or subscribe or any solicitation of any offer to purchase or subscribe for any securities in any jurisdiction, and neither this announcement (nor any part of it) nor the fact of its distribution form the basis of, or may be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever.

Bank of Georgia issues US$ 250 million Eurobond

Bank of Georgia Holdings plc ('BGH') (LSE: BGEO LN), the holding company of JSC Bank of Georgia (the 'Bank'), Georgia's leading bank, announced today that the Bank has completed the issuance of its US$250 million 7.75% Notes due 2017 (the 'Notes'). The Regulation S / Rule 144A 5-year senior unsecured Notes carry a 7.75% coupon rate per annum, paid semi-annually, and were issued and sold at closing at a price of 99.491% of principal amount on 5 July 2012. Credit Suisse Securities (Europe) Limited, J.P. Morgan Securities Ltd. and Merrill Lynch International acted as Joint Lead Managers and Bookrunners for the Notes. Dechert LLP and Baker & McKenzie LLP acted as legal advisors to the Joint Lead Managers and the Bank, respectively. The Notes are rated BB- (Fitch) / Ba3 (Moody's) / BB- (Standard & Poor's). The Notes are listed on the Official List of the UK Listing Authority and admitted to trading on the London Stock Exchange's Regulated Market.

"We are very pleased to have completed this Eurobond transaction in the current market conditions. Over 50 institutional investors from the US, UK, Switzerland, Italy, and other European countries placed orders. The bond issue, the net proceeds of which will be used, among other things, for general working capital purposes, will help us to optimize our average cost of funding. I would like to thank my colleagues and our advisors and congratulate them upon the successful completion of the deal", commented Irakli Gilauri, Chief Executive Officer.

DISCLAIMER:

This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information contained and/or incorporated by reference in the final prospectus published by JSC Bank of Georgia in connection with the offer referred to above.

The securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act'), or under the securities law of any state or other jurisdiction of the United States and may not be offered, sold or delivered, directly or indirectly, in or into the United States or to U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No public offering of the securities will be made in the United States.

In the United Kingdom, the offer is only being made pursuant to the final prospectus.

The offer is being made in accordance with the requirements of Georgian law. This announcement is not an advertisement of any securities for the purposes of Georgian law.

About Bank of Georgia Holdings plc

Bank of Georgia Holdings plc is a UK-incorporated holding company of Bank of Georgia. Bank of Georgia is the leading Georgian bank, based on total assets (with a 34% market share), total loans (with a 35% market share) and client deposits (with a 34% market share) as of 31 March 2012, all data based on standalone financial information filed by banks in Georgia with the National Bank of Georgia. The Bank offers a broad range of corporate banking, retail banking, wealth management, brokerage and insurance services to its clients.

Bank of Georgia has, as of the date hereof, the following credit ratings:

Standard & Poor's	'BB-/B'
FitchRatings	'BB-/B'
Moody's	'B1/NP' (FC) & 'Ba3/NP' (LC)

For further information, please visit www.bogh.co.uk, www.bog.ge/ir or contact: 

Irakli Gilauri	Macca Ekizashvili	David Westover/Justin Griffiths
Chief Executive Officer	Head of Investor Relations	Citigate Dewe Rogerson
[phone]	[phone]	[phone]
[e-mail]	[e-mail]	[e-mail]

 This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities.

 

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