Unprecedented Emission by Tegeta Holding - The Company Issues Bonds Amounting GEL 150 Million With the Support of TBC Capital

• This is the largest emission of corporate securities in the national currency ever implemented in the local market of Georgia

• The investor base of the bonds is diversified. No single investor’s share exceeds 30% total book-building

• Tegeta is the only company in Caucasus region’s auto industry to have an international credit rating

With support of TBC Capital, the leader of the automobile industry Tegeta Holding executed an unprecedented emission in the capital market: Bonds amounting GEL 150 million have been issued. This is the largest emission of corporate bonds denominated in GEL in the history of Georgia, and the second largest in the local security market. The value of the issued bond was determined by TIBR+3.5%. The legal advisor for the flotation was BLC Law.

Tegeta Holding mobilized GEL 150 million as a result of the bond emission, which will be fully used for the refinancing of outstanding debt obligations. The maturity profile of the company’s liabilities will be improved, which, in turn, will significantly improve the company’s liquidity. The full principal amount of the bonds is expected to be repaid after three years, and the coupon interest rate will be paid on a quarterly basis.

Vakhtang Kacharava, Executive Director of “Tegeta Holding”: “It is very important and valuable for us that all the main participants of the financial sector of Georgia trust Tegeta. We managed to implement this important transaction with the active involvement and work of our competent team. We note the support and role of TBC Capital in this unprecedented financial operation. The main advantage of bonds is their unsecured nature. It is the best alternative to a bank loan, allowing a company to diversify its financial liabilities easily. As a result the funds that will be released from the placement of bonds will be fully used for the development of our Holding and for the activation of new investment opportunities. The bonds were issued in the national currency, which minimizes the currency risks for the Holding.”

Investors of the bonds placed by Tegeta Holding are mainly Georgian banks and insurance companies. The investor base is diversified, and no single investor’s share exceeds 30% of the flotation. Tegeta Holding explains the interest and activity of financial organizations in relation to the issued bonds by the high trust in the company.

The mentioned bonds are the 11^th placement by TBC Capital in this year, which is a record number for the capital market of Georgia. During the year, the total amount of flotation exceeded GEL 1.5 billion.

Historically, TBC Capital has placed bonds of more than 60 organizations in total. Among them are eight Eurobonds placed at the Irish and London stock exchanges.

According to the data of 2022, TBC Capital is the leader in the capital market and occupies 77% of the market according to the total flotation volume.

Meri Chachanidze, Managing Director of TBC Capital: “First of all, we congratulate Tegeta Holding for the successfully closed transaction. We are glad that in the history of Georgia, the largest corporate bond of securities denominated in the national currency was placed with the participation of TBC Capital. Through the capital market, we assisted the company to find alternative sources of financing and gave them the opportunity to improve their financial structure. Three years ago, Tegeta also implemented its first emission with our support. TBC Capital is the leading investment bank in the flotation of local bonds. We support the development of both local companies and the local capital market, which increases the attractiveness of Georgia for both local and foreign capital.”  

Tegeta implemented its first successful emission and encashed bonds amounting to GEL 30 million in 2019. This was a transaction of an unprecedented volume in the corporate public bond segment. A significant part was of those bonds was acquired by the European Bank for Reconstruction and Development. Next year, Tegeta Holding plans to become more active in the capital market and to issue green bonds for international financial companies. S