Georgia: GHG sells five-year debt

Georgia Healthcare Group (GHG), the largest healthcare services provider in Georgia, has sold L50m (US$16.9m) five-year unsecured bonds in the domestic market.

A standout deal by any metric, it achieved the lowest margin floating rate among corporate bond issuances in Georgia.

GHG’s hospital arm JSC Evex Hospitals printed the 2024s at par to yield 310 basis points over the National Bank of Georgia monetary policy rate.

With the policy rate at 8.5%, this gives the bond a current yield of 11.6%.

The European Bank for Reconstruction and Development (EBRD) came in as a cornerstone investor.

“This is our fourth transaction with Evex since 2016, when EBRD provided financing facility for renovation and refurbishment of a hospital in Tbilisi,” said Catarina Bjorlin Hansen, EBRD regional director for Caucasus. She added that “the transaction sends a strong signal that bonds are a viable source of local currency funding for the private corporate sector”.

Proceeds will be used to refinance debt.

Lead manager is JSC Galt & Taggart.