Tegeta Holding Issued Securities Equivalent to 25 Million USD With the Support of Galt & Taggart

Tegeta Holding Issued Securities Equivalent to 25 Million USD With the Support of Galt & Taggart

“Tegeta Holding” has successfully issued bonds worth 20 million USD and 5 million Euros with the support of “Galt & Taggart”. The term of the bonds is two years. Coupon payments will be made once every 6 months to the amount of 8.5% per annum for bonds denominated in US dollars, and 7.0% per annum for bonds denominated in Euros.

This is the first public emission in a foreign currency implemented by the leading company in the auto industry that is available for physical persons to invest in.

Interest from investors is high, and up to 150 Georgian and foreign physical persons have already purchased bonds, which indicates high diversification in the investor base.

According to Tegeta Holding’s action plan, the funds mobilized as a result of the bond emission will be fully applied to the refinancing of existing debt obligations so as to improve the maturity profile of the company’s obligations, as well as its liquidity.

Vakhtang Kacharava, Executive Director of Tegeta Holding: “This is Tegeta’s second emission in the last few months. This time, our offer is also available for physical persons. The interest was huge, the demand exceeding the volume of the bonds issued, and that is why we increased the initial volume of the emission. The demand indicates the high confidence and positive future expectations people have towards our company. All documents prepared within the frames of the public bond issue are transparent and available to interested parties. Tegeta Holding’s future strategy focuses on strengthening our representation on the international markets, hence securities are being issued in USD and Euros. This decision fully responds to the company’s development strategy on foreign markets. What’s more, for Tegeta Holding, as one of the largest businesses in the country, it is important to develop the capital market in the country. We are oriented to contribute to this process.”

The move is financially beneficial for the company on the one hand, and clearly demonstrates the scale of progress and business development of Tegeta Holding as a reliable partner, on the other.

Tegeta Holding’s offer caught the attention of investors, and in response to the demand, the volume of bonds denominated in US dollars was increased from the initial 10 million USD to 20 million US dollars. At the current stage, bonds to the amount of 15 million US dollars and 4 million Euros have been issued.

Within the frames of the same emission prospectus, Tegeta Holding plans to issue an additional tranche in the near future: an additional 5 million US dollars, spread throughout the current year.

Within the scope of the mentioned transaction, investment bank Galt & Taggart was the partner and supporter of Tegeta Holding, being in charge of the entire emission process.

Irakli Kirtava, General Director of Galt & Taggart: “I am delighted that Galt & Taggart was actively involved in the successful implementation of such an important transaction, in the role of placement and calculation agent. One unique feature of the deal in particular is worth noting: the structuring of multi-currency transactions within a single emission prospectus. We hope that many more such transactions will be carried out within the framework of our cooperation in the future. I would like to thank and congratulate the entire Galt & Taggart team for another successful and exciting transaction. Galt & Taggart has been a leading investment bank in the Georgian market for years, effectively cooperating with various representatives of the private and public sectors, as well as with international financial institutions”.

Tegeta Holding carried out the first successful emission in 2019, and issued bonds worth 30 million GEL, a significant part of which was acquired by the European Bank for Reconstruction and Development.

At the end of last year, the company made the largest emission of local corporate bonds denominated in the national currency in the history of Georgia, issuing bonds worth 150 million GEL. The investor base of the mentioned bonds is diversified, and no investor’s share in the placement exceeds 30%.

In the near future, Tegeta Holding will become even more active in the capital market and plans to issue green bonds for international financial companies.  S


About Tegeta Holding LTD:

The largest automotive company in the Caucasus region and Central Asia, Tegeta Holding offers customers the full spectrum of the automotive ecosystem, including light, truck and construction, as well as commercial, passenger and industrial transport. Tegeta Holding has 29 service centers throughout the country and carries out international trade on four continents. Tegeta Holding exclusively represents famous brands Porsche, Volvo, Toyota, Mazda. Partners of the holding in the direction of trucks and special equipment count MAN, JCB, HINO, Liebherr, BOMAG, and others. Tegeta Holding is the largest importer of more than 300 world leading automotive brands in Georgia, and is one of the largest employers in the country, with 2,500 employees. 

About JSC Galt & Taggart:

JSC Galt & Taggart is a 100% owned subsidiary of the Bank of Georgia holding company. The company offers a wide range of investment banking and investment management services through investment banking, asset management, brokerage, wealth management and research. For more information visit: www.gt.ge