
In particular, the low-risk, conservative portfolio grew by 1.22% in August, and from the beginning of the year to August, the growth was 7.29%.The balanced, medium-risk portfolio grew by 1.51% in August, and from the beginning of the year to August the growth amounted to 8.11%.Meanwhile, the net nominal returns of the high-risk, dynamic portfolio amounted to 1.98% and 9.2%, respectively.Inflation in August was 0.28%, and from the beginning of the year to August it was 2.63%. Accordingly, the real returns of the pension fund in the relevant periods are calculated excluding inflation.
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The call option will be utilised to redeem early a significant proportion of JSC GCAP's US$ 150 million sustainability-linked local bonds (ISIN: GE2700604475), which would otherwise mature in August 2028.Following the redemption, the outstanding principal amount of the bonds will be reduced by USD 100 million to a residual outstanding balance of USD 50 million. Settlement of the early redemption transaction is expected to occur on 26 September 2025.The transaction is consistent with the Company's GEL 700 million capital return programme, announced on 6 August 2025, which will run through the end of 2027. This covers capital returns through share buybacks, dividends, and the early repayment of JSC GCAP bonds.
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The Notes are GEL-denominated with 5-year bullet maturity and carry a floating coupon, as determined by Tbilisi Interbank Interest Rate (Non-Cumulative Compounded Daily TIBR) plus 375 basis points. The Notes are issued at par and are rated BB- by Scope Ratings. Settlement of the transaction is expected on 17 September 2025, followed by admission to the Georgian Stock Exchange.GHG obtained a Second-Party Opinion from Scope, confirming that its Social Bond Framework aligns with ICMA's 2023 Social Bond Principles. Galt & Taggart and TBC Capital acted as placement agents for the issuance of the Notes. The issuance was supported by long-standing partner international financial institutions ("IFIs") - International Finance Corporation ("IFC"), and Asian Infrastructure Investment Bank ("AIIB") along with local banks and Pension Fund of Georgia - whose participation represents the fund's biggest investment in a single local bond issuance since its inception.The proceeds will be used to refinance the issuer's existing long-term loans and to finance capital expenditures in line with the Social Bond Framework. Upon completion, the Notes will constitute the business' sole outstanding debt."I am pleased that our healthcare services business has successfully completed the largest-ever GEL-denominated corporate bond placement in Georgia. The transaction received very strong support from investors, demonstrating that Georgia's capital markets continue to develop rapidly and, thanks to the support of local investment banks, Galt & Taggart and TBC Capital, have become a significant alternative source of capital for our group. I would like to thank the management team and our long-standing partners - IFC, AIIB, and Pension Fund of Georgia - whose efficient collaboration made this transaction a success. The Notes mark another important milestone for our group and once again reaffirm our superior access to capital”, - Irakli Gilauri, Georgia Capital Chairman and CEO commented.
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As of the document, 96.5% percent of the total money transfers from abroad came from 25 largest partner countries, with the volume of transfers from these countries each exceeding 1 million USD in August 2025. In August 2024 the share of these 25 countries constituted 96.5% percent of the total volume of money transfers.In August 2025, 35.7 million USD (or 96.4 million GEL) was transferred from Georgia, which is 7.8% more as compared to 33.1 million USD in August 2024.
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Lion Finance Group (BGEO LN) shares closed at GBP 76.05/share (+6.36% w/w and -4.94% m/m). More than 346k shares traded in the range of GBP 72.70 - 78.15/share. Average daily traded volume was 56k in the last 4 weeks. The volume of BGEO shares traded was at 0.78% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 44.40/share (+3.38% w/w and -7.69% m/m). More than 294k shares changed hands in the range of GBP 43.35 - 45.25/share. Average daily traded volume was 71k in the last 4 weeks. The volume of TBCG shares traded was at 0.52% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 23.55/share (+0.21% w/w and +0.64% m/m). More than 351k shares traded in the range of GBP 22.85 - 25.15/share. Average daily traded volume was 118k in the last 4 weeks. The volume of CGEO shares traded was at 0.89% of its capitalization.
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Among the fund’s portfolios, the dynamic portfolio showed the highest growth in August at 1.98%, while the balanced and conservative portfolios rose by 1.51% and 1.22%, respectively.Year-to-date returns are also notable:· Conservative: 7.29%· Balanced: 8.11%· Dynamic: 9.20%Since their creation on August 6, 2023, long-term annualized returns have been strong, with the dynamic portfolio at 13.8%, balanced at 12.7%, and conservative at 11.6%.By the end of August, total assets of the Pension Fund exceeded ₾7.4 billion, with generated income surpassing ₾1.9 billion, reflecting continued growth and stability in Georgia’s pension system.
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The fund reports that 1,667,000 citizens currently participate in the pension program. The total value of pension assets now stands at GEL 7.4 billion, including GEL 1.9 billion in generated income.The figures highlight the continued growth and sustainability of the country’s funded pension system, which provides long-term financial support for Georgian citizens.
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According to the NBG, the monetary policy rate stands at 8 per cent.“As of August 2025, the overall price level in Georgia increased by 4.6 per cent year-on-year. The moderate increase in inflation relative to the 3 per cent target was mainly driven by rising food prices, which are characterised by high volatility. Notably, core inflation, which excludes the most volatile components from the consumer basket, such as food, energy, and tobacco, remained below the 3 per cent target, standing at 2.8 per cent in August. Apart from core inflation, other measures of relatively sticky prices have moderately ticked up, which keeps the risks of inflation expectations noteworthy. Specifically, service sector inflation reached 4.2 per cent in August. Meanwhile, prices of imported goods remain in deflationary territory, largely reflecting the year-on-year decline in fuel prices.As expected under the NBG’s central scenario, inflation is temporarily remaining above the target level and is projected to average around 3.8 per cent in 2025. Despite current inflation being primarily driven by temporary supply-side factors, the NBG still chooses a cautious stance to prevent the ongoing price increases from getting entrenched in long-term inflation expectations. Consequently, inflation is projected to stabilise around 3 per cent over the medium term.At the same time, as anticipated, economic activity is exhibiting a gradual convergence toward its long-term trend, thereby mitigating demand-side pressures on prices. Specifically, economic growth amounted to 6.5 per cent in July. The normalisation of aggregate demand toward its long-run trend is further supported by tighter financial conditions, as reflected in prevailing market interest rates.Amid elevated global uncertainty, inflation risks, both to the upside and downside, remain noteworthy.Accordingly, the Monetary Policy Committee considered both high-inflation and low-inflation risk scenarios. On the one hand, U.S. tariff policy remains uncertain, and its final configuration has been revised on multiple occasions. This situation further reinforces global economic fragmentation. As a result, supply chain disruptions may emerge, potentially contributing to the development of a stagflationary environment. Moreover, the re-escalation of geopolitical tensions in the Middle East would generate inflationary risks, as it exerts significant pressure on global oil markets. At the same time, when considering a high-inflation scenario, tendencies in the domestic economy also warrant attention. Specifically, other things equal, a moderate increase in the overall price level above the target is expected to be temporary, driven mainly by base effects and one-off adjustments in food prices. However, if inflation remains above the target for a prolonged period, this could give rise to risks of elevated inflation expectations. The realisation of these risks requires a higher interest rate path compared to the central scenario.On the other hand, the Monetary Policy Committee considered a low-inflation risk scenario, where the realisation of the risks would shape the development of fundamental factors in a way that requires a lower trajectory of the monetary policy rate compared to the central scenario. International food commodity prices exhibit high volatility; however, should prices normalise more rapidly than expected, this adjustment would be transmitted to the domestic market. At the same time, the U.S. dollar index (DXY) remains relatively weak globally. If these dynamics persist longer than anticipated, the combination of an appreciated exchange rate and a declining trend in international food commodity prices is expected to exert downward pressure on headline inflation through lower imported inflation.As a result of macroeconomic analysis and the assessment of existing risks, the Monetary Policy Committee has considered it optimal to maintain a moderately tight monetary policy stance and keep the policy rate unchanged at 8 per cent. Upcoming decisions on the monetary policy rate will depend on updated macroeconomic forecast scenarios and risk assessments.The NBG will use all available instruments to maintain price stability. This means keeping the overall price level increase close to the 3 per cent target over the medium term,” the press release of the National Bank of Georgia reads.The next meeting of the Monetary Policy Committee will be held on November 5, 2025.
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According to the Ministry, this marks the first time an international financial institution has allocated a sovereign loan in Georgian lari, highlighting the strong partnership between the ADB and the Government of Georgia not only in financing investment projects but also in backing structural reforms and sustainable public financial management.The Ministry states that borrowing in GEL aligns with Georgia’s debt management strategy, promoting a balanced mix of foreign and domestic currency debt. This approach enhances economic resilience to external shocks and supports debt sustainability.The programme also aims to improve the quality of vocational education, increase accessibility and inclusiveness, and strengthen institutional capacity, supporting the Ministry of Education, Science and Youth.
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Lion Finance Group (BGEO LN) shares closed at GBP 71.50/share (- 2.46% w/w and -7.68% m/m). More than 229k shares traded in the range of GBP 69.20 - 74.00/share. Average daily traded volume was 51k in the last 4 weeks. The volume of BGEO shares traded was at 0.52% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 42.95/share (- 1.83% w/w and -11.90% m/m). More than 334k shares changed hands in the range of GBP 42.05 - 44.95/share. Average daily traded volume was 79k in the last 4 weeks. The volume of TBCG shares traded was at 0.59% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 23.50/share (+3.30% w/w and +6.33% m/m). More than 288k shares traded in the range of GBP 22.30 - 24.90/share. Average daily traded volume was 132k in the last 4 weeks. The volume of CGEO shares traded was at 0.73% of its capitalization.
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