Georgia plans to issue $110-$150 mln worth of govt bonds denominated in nat'l currency

TBILISI. May 20 (Interfax) - The Georgian government has decided to issue government bonds totaling 300-400 million lari ($110-$150 million at the current exchange rate) this year, maturing in April 2032, and the government has posted the corresponding resolution on its website.

The Georgian investment banks of Galt&Taggart and TBC Capital have been appointed as the organizers of the placement.

Georgian Finance Minister Lasha Khutsishvili in February announced that the Finance Ministry was planning to issue large amounts of lari-denominated treasury bonds for international investors.

"Many foreign companies have expressed a desire to participate more actively in the issuance of lari-denominated securities or treasury bonds. Furthermore, we are already seeing activity from non-residents and foreign companies regarding our securities," Khutsishvili said.

Khutsishvili said that interest on the part of international investors in lari-denominated debt instruments is owing to high volatility on international markets. Khutsishvili cited the stability of the lari, Georgia's strong economic growth, low budget deficit, and tight monetary policy as factors supporting investor interest.

In early February, Georgia placed $500 million in 5-year unsecured Eurobonds on the London Stock Exchange, with a coupon of 5.125% per annum and maturity on January 28, 2031. JPMorgan, Citi, ICBC, and Societe Generale arranged the issue. The new issue is intended to refinance $500 million in 5-year Eurobonds issued in April 2021, with a coupon of 2.75%. Investor demand for the Georgia-2031 Eurobonds exceeded supply more than fivefold, reaching $2.8 billion.