The EBRD allocated 217 million euros to Georgia for refinancing Eurobonds
Since the beginning of the year, the Corporation, in cooperation with major investment banks, has been actively engaged in organizing and managing the process of refinancing Eurobonds in 2016.
The European Bank for reconstruction and development (EBRD) has allocated 217 million euros to the Georgian oil and gas Corporation (GOGC) to refinance Eurobonds, according to a statement on the Corporation's website.
The loan agreement provides for full refinancing of Eurobonds worth $ 250 million, which are listed on the London stock exchange.
"The terms of the loan are much better than we would have had if the refinancing process had been implemented before the pandemic: the interest rate is half as low, and the loan term is 10 years, while the Eurobonds would have been five years. Thus, despite the global difficulties caused by COVID-19, the Corporation successfully coped with the process of ensuring the refinancing of Eurobonds, which will help us more effectively implement the planned projects," said GOGC CEO Georgy Bakhtadze.
According to Bakhtadze, the loan agreement will ensure the long-term financial stability of the Corporation, as well as significantly reduce its financial costs.
Since the beginning of the year, the Corporation, in cooperation with major investment banks, has been actively engaged in organizing and managing the process of refinancing Eurobonds in 2016.
A corresponding information prospectus was prepared for potential investors. However, the spread of COVID-19 and its negative impact on financial markets made it impossible to conduct transactions under acceptable conditions.
The Corporation, in agreement with investment banks, rejected the repurchase of 2016 Eurobonds in April 2020 on the London stock exchange, placing new Eurobonds and resorting to alternative refinancing methods.
GOGC is a key tool for ensuring the reliability of natural gas supplies. In addition, the Corporation is a representative of the government of Georgia in major oil and gas transit projects, and also has the status of a National oil company. The Corporation represents the interests of the state in product distribution agreements.
Sputnik-georgia.ru
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The EBRD allocated 217 million euros to Georgia for refinancing Eurobonds
Since the beginning of the year, the Corporation, in cooperation with major investment banks, has been actively engaged in organizing and managing the process of refinancing Eurobonds in 2016.
The European Bank for reconstruction and development (EBRD) has allocated 217 million euros to the Georgian oil and gas Corporation (GOGC) to refinance Eurobonds, according to a statement on the Corporation's website.
The loan agreement provides for full refinancing of Eurobonds worth $ 250 million, which are listed on the London stock exchange.
"The terms of the loan are much better than we would have had if the refinancing process had been implemented before the pandemic: the interest rate is half as low, and the loan term is 10 years, while the Eurobonds would have been five years. Thus, despite the global difficulties caused by COVID-19, the Corporation successfully coped with the process of ensuring the refinancing of Eurobonds, which will help us more effectively implement the planned projects," said GOGC CEO Georgy Bakhtadze.
According to Bakhtadze, the loan agreement will ensure the long-term financial stability of the Corporation, as well as significantly reduce its financial costs.
Since the beginning of the year, the Corporation, in cooperation with major investment banks, has been actively engaged in organizing and managing the process of refinancing Eurobonds in 2016.
A corresponding information prospectus was prepared for potential investors. However, the spread of COVID-19 and its negative impact on financial markets made it impossible to conduct transactions under acceptable conditions.
The Corporation, in agreement with investment banks, rejected the repurchase of 2016 Eurobonds in April 2020 on the London stock exchange, placing new Eurobonds and resorting to alternative refinancing methods.
GOGC is a key tool for ensuring the reliability of natural gas supplies. In addition, the Corporation is a representative of the government of Georgia in major oil and gas transit projects, and also has the status of a National oil company. The Corporation represents the interests of the state in product distribution agreements.
Sputnik-georgia.ru
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