The Government of Georgia has successfully issued USD 500 million in Eurobonds on the London Stock Exchange, with a coupon rate of 5.125%.

According to the official statement from the Ministry of Finance, the coupon rate for this issuance is the lowest recorded for sovereign Eurobonds with a similar and one-notch higher credit rating for Georgia in the past four years.

The proceeds from the new Eurobonds will be used to refinance the 2021 bonds.

“In addition to the financial resources attracted, the issuance of a new Eurobond holds significant importance for two reasons: it reflects the country’s risk level and gauges the interest and confidence of international investors in Georgia and its economy. The Eurobonds issued by the Georgian government serve as a key indicator of both the country’s risk profile and investor interest.

“Notably, Georgia’s risk level was reduced by over 50 basis points, equivalent to more than 25%. Additionally, demand from international investors soared to a record high of USD 2.8 billion, a level 5.5 times the amount of securities on offer. The transaction attracted participation from more than 100 international investors.

The fact that investors across America, Europe, and Asia view Georgia as significantly less risky demonstrates their readiness to invest USD 2.8 billion. The Georgian government’s active engagement in international securities markets signals strong confidence and high interest in the country’s reform efforts, fiscal stability, and economic policies,” the statement reads.

The Ministry of Finance emphasised that by issuing securities internationally, Georgia will likely increase its presence not only in Eurobonds but also across other markets in the future.

During investor meetings, high interest was also expressed in GEL-denominated securities.