The Asian Development Bank (ADB) raised 60 million GEL (about $21m/€18.70m) from two new issues of local currency bonds auctioned today in Georgia, announces the ADB.

"ADB is committed to promoting local currency bond markets. These bond issues not only deliver local currency funding for ADB’s private sector operations, but also maximise our development impact by supporting the deployment of cutting-edge financial market infrastructure in Georgia”, said ADB Treasurer Pierre Van Peteghem.

This dual-tranche bond issue is ADB’s third offering in the domestic Georgian capital market since the institution’s inaugural fundraising in 2015. The bonds are equally sized in tranches - 30 million GEL of three-year tenor and 30 million GEL of five-year tenor.

"The new bonds, auctioned today and to be settled on 15 July, mark an important milestone as the first time IFI bonds have been issued and stored in the new Georgian Securities Settlement System (GSSS), whereby the central bank acts as registrar of the bonds and the Georgian Central Securities Depositary as depository. We trust the bonds will be popular with investors and we look forward to working with ADB on future initiatives”, said Vice Governor of the NBG Archil Mestvirishvili.

The proceeds of the bond issues will be on-lent to Credo Bank to launch new products including home improvement and mortgage loans to lower income households in rural areas and on the outskirts of Georgian capital, Tbilisi.

Credo’s long-term loans will particularly benefit women-headed households not only by improving living conditions but also by broadening rural income generation through the construction of homestays.

source: AGENDA/ agenda.ge