Finance

EDG issues bonds to cover previous issue

The Cascade Power Plant Management Company is issuing $10 million 2-year bonds (nominal value: $1,000). The loan bonds have no credit rating. They are green, unsecured, unsubordinated obligations.The issue was authorized by the decision of the Supervisory Board (Chairman Mindia Sabanadze, Director Giorgi Shukakidze) dated June 3, 2025.Key characteristics:Total Nominal Value – 10 million USD;Nominal Value - 1,000 USD;Issue Date – 22 June 2022;Maturity Date – 22 June 2025;Annual Coupon Rate – 8.5%;Maturity Date - 23.06.2027EDG's existing portfolio of assets includes 3 hydroelectric power plants.All of the Issuer’s power plants, except for Sashuala HPP, benefit from a long-term guaranteed power purchase agreement (“PPA”) with the Power Market Operator (ESCO), which results in predictable dollar-denominated cash flows, as the power purchase agreements are fixed in US dollars.The PPA allows the Company to sell electricity exclusively to ESCO for 8 months (September-April) at a maximum price of 6.00 US cents/kWh. The remaining 4 months are sold on the basis of direct contracts, in the local market and for export.The bond issue is planned to fully refinance the existing bonds (ISIN: GE2700604459). The interest rate on the bonds to be repaid was also 8.5%, the issue amount is TBC Capital. However, the group also cooperates with G&T.The securities will also be listed on the Georgian Stock Exchange.

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Salaries in the financial sector have increased by 22%

Salaries in the finance and insurance sector have increased by 22% annually, to 5.5 thousand GEL.There are up to 4.2 thousand employees in the information/communications sector (+5.2%y.y) and a specialist in professional/scientific/technical sectors receives up to 3,000 GEL per month (+11.3%Y.Y).The average salary of employees in the construction sector has increased by 10.8% annually, to 2,909 GEL.The average salary of a woman – GEL 1,744 still lags behind the average salary of a man – GEL 2,601, 1.5 times. However, the annual increase in women's salaries (+13.3%Y.Y) has outpaced that of men (+11%Y.Y).

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0.6% of the dynamic pension portfolio has been directed to America

There are only 4,821 citizens in the portfolio to date.The net nominal return for May itself was 2.42%, and the real return adjusted for inflation was 1.98%.In May, 48% of the total portfolio remains in Georgia, instead of 48.6% in April, when the portfolio size was GEL 39.1 million. The largest share of the local portfolio falls on certificates of deposit and term deposits - 40.2% (April - 39.5%).The fund invested 47.9% of its risky portfolio in global equities in May (-0.1pp m.m), while it held 4.2% in treasury bonds (+0.8pp m.m).In accordance with the law, a minimum of 40% and a maximum of 60% of the fund's high-risk assets are allowed to be invested in foreign currency-denominated assets and equity securities.

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Remittances from the US increased, while from Russia – decreased

As of the statistics published by NBG on Monday, the maximum share of remittances falls on the European Union countries, amounting to 44.1%, corresponding to $140.1 million. Among the European Union countries, it is worth noting the high share of Italy, Germany and Greece in total remittances, while the total annual growth rate was determined at 16%.In addition, the growth trend of remittances from the United States continues. In particular, an annual increase of 25.2% was recorded and the volume amounted to $59.1 million.Remittances from the Russian Federation are characterized by a decreasing trend. In particular, in May they decreased by 9.2% annually amounting to $43.7 million.In May 2025, $35.2 million (GEL 96.5 million) was sent abroad from Georgia, which is 16.8% more than the similar figure in May 2024 ($30.1 million).

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TBC to distribute up to £85 million in dividends

TBC Bank Group PLC ("TBC PLC") announces that the Georgian Lari to Pound Sterling exchange rate that will apply to the final dividend payment for 2024 will be 3.6965, being the average exchange rate of the National Bank of Georgia for the period of 9-13 June 2025 inclusive (5 days average).On 11 April 2025 (being the last business day prior to publication of this notice), the Company’s issued share capital comprised 56,211,873 ordinary shares carrying one vote each including ordinary shares held as treasury shares. As at such date, the Company held no ordinary shares as treasury shares. Therefore, the total number of voting rights in the Company as at 11 April 2025 is 56,211,873.Shareholders at the Annual General Meeting (AGM) approved by 100% of the votes cast the final dividend for the financial year ending 31 December 2024. The Group will pay the dividend on 11 July 2025 to shareholders who were registered on the Company's register of members as at 6 June 2025, London time.

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Shares of all three Georgian companies listed on the London Stock Exch...

Lion Finance Group (BGEO LN) shares closed at GBP 66.05/share (- 4.14% w/w and -1.56% m/m). More than 128k shares traded in the range of GBP 65.15 - 70.15/share. Average daily traded volume was 37k in the last 4 weeks. The volume of BGEO shares traded was at 0.29% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 44.75/share (- 0.78% w/w and -2.82% m/m). More than 296k shares changed hands in the range of GBP 44.10 - 45.65/share. Average daily traded volume was 55k in the last 4 weeks. The volume of TBCG shares traded was at 0.53% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 18.54/share (-3.24% w/w and -3.34% m/m). More than 230k shares traded in the range of GBP 18.36 - 19.38/share. Average daily traded volume was 40k in the last 4 weeks. The volume of CGEO shares traded was at 0.58% of its capitalization.

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Pension loan issuances decreased

The bank's customer service center (hotline) reported that the rate on pension loans is issued at an annual rate of 24-25%.It is also difficult to indicate the effective rate for consumer loans. The operator notes that it is possible only after filling out the application, during the session processing.The nominal rate is determined from 9.9% for Liberty's salary clients and from 15.9% for clients of other banks.Consumer loans, including pension loans, are issued for a term of up to 4 years. The borrower's age at the end of the loan should not exceed 84 (overdraft up to 76 years).As of Q1/2025, the volume of loans secured by pension (and other social payments) (total value, not principal amount) is 439.7 million GEL (2024 – GEL 431.3 million GEL).In the first quarter of 2025, the volume increased, while the number of loans decreased. Total, 286,877 units of credit have been issued (01.01.2025 - 294,991).Annually, the volume has increased by 4.7%, the number has decreased Q1/2024 – 420 million; 341,388 units of loans).

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Crystal to have the highest interest rate on a certificate of deposit

Including a certificate of deposit, an analogue of which, with the same parameters, Crystal has issued before its transformation into a bank (2023). The most secure, promissory note-type security is "Moneta", which will become even more flexible after being renamed a certificate of deposit.The microbank believes that along with small and medium-sized business loans, "Crystal" has a competitive advantage in the market with this deposit product.At this stage, the security with a maturity of up to 2 years is priced at 13.5% in GEL. The yield of the certificate denominated in USD and EUR is 2-2.5% higher than the market rate, respectively, the annual rate in USD is 6.25%, in EUR - 4.75%.Filling out consumer and auto loan applications in "Crystal" is already convenient remotely. The management has developed 95 projects for the formation of a bank, including the development of digital channels.The management believes that it is well positioned in the segment of lending to small and medium-sized enterprises, because it is a niche for "Crystal". It is closer to business and, accordingly, better knows their needs.At the moment, Microbank Crystal issues mortgage loans from 18% (effective from 22%), consumer loans from 20% (effective from 23.5%), car loans from 16% (effective from 28%) and also car pawnshops from 16% (effective from 30%). As of May 1, "Crystal" is represented in the banking market with a credit portfolio of 564 million GEL, with a market share of 0.9%. It has the largest portfolio among microbanks (2nd MBC holds 0.2%). It is also large in several banks operating in the former MFO market (Pasha Bank, Ziraat Bank, Silk Bank).

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Parliament Approves National Bank of Georgia’s 2024 Report

In her address to Parliament, Turnava outlined the NBG’s strategic priorities during the reporting period, emphasizing the Bank’s core mandate: maintaining price stability as a foundation for long-term economic growth. Georgia has followed an inflation-targeting regime since 2018, with a target rate of 3%.“In 2024, inflation remained low and stable, averaging 1.1%, while core inflation—excluding food, energy, and tobacco—stood at 1.6%,” said Turnava. “This low inflation environment was largely driven by domestic factors and effective monetary policy. The stable effective exchange rate of the lari also contributed significantly.”Turnava noted that the NBG reduced the refinancing rate by 1.5 percentage points to 8% in the first half of 2024. However, due to rising global risks in the second half, the Bank adopted a cautious stance, keeping the policy rate unchanged.“This policy supported a resurgence in credit activity, boosting aggregate demand. With rising domestic demand and improved productive capacity, Georgia experienced real GDP growth of 9.4% in 2024,” she said, adding that external demand also contributed positively.International Reserves & FX Market Management The President of the National Bank emphasized the importance of international reserves in maintaining macroeconomic stability. As of December 2024, Georgia’s reserves stood at $4.4 billion.She explained that while favorable conditions in early 2024 allowed the NBG to replenish reserves via FX interventions, the second half of the year saw market volatility and speculative pressures, prompting the NBG to intervene by supplying USD liquidity to stabilize expectations.“Despite short-term pressure, we resumed reserve accumulation by year-end. Total net FX sales in 2024 amounted to $434.75 million. As of May 2025, official reserve assets reached $4.6 billion, fully offsetting last year’s net sales,” Turnava stated.Turnava also addressed the ongoing challenge of financial dollarization, noting progress made due to structural reforms implemented by the NBG.“Loan dollarization decreased to 43.3% from 55.4% in 2019, and deposit dollarization fell to 52.2%, down from 64%. However, dollarization remains a key risk,” she noted. “To address this, we continued implementing our long-term de-dollarization plan, including further reductions in limits on unhedged FX loans, which will be capped at GEL 500,000.”

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Problem mortgages increased in USD, while decreased in GEL

As of 01.05.2025, non-performing mortgages in the GEL portfolio amounted to 112 million GEL (L/m -109.4 million). In EUR, it exceeds the equivalent of 37 million GEL (L/m - 35.7 million).At the same time, the problem ratio is still at a low 1.4% in GEL. In USD, it exceeds 2% (1.9%). In EUR, it exceeds - 2.3%.Of the 195 million GEL of overdue mortgages, the USD portfolio accounts for the equivalent of 46.2 million GEL, which is 1.5% less than the previous month and 2.7% less than the previous year (L/m – 45.9 million), 01.05.2024 – 47.5 million).According to the interactive statistics of the Bank of Georgia, as of May (01.05.2025), there are 12.3 billion GEL of mortgage loans in the banks' portfolio. Of which 66.66% are denominated in GEL (L/Y – 62.1%)

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0.6% of the dynamic pension portfolio has been directed to America

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Politics

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For Georgia's leader Gakharia to be summoned again to Parliamentary In...

As head of the commission Tea Tsulukiani stated before the session, Gakharia has already been notified and is expected to appear for further questioning on June 23. The inquiry will focus on the villages of Chorchani, Tsaghvli, and surrounding areas.“We will re-interrogate Giorgi Gakharia on June 23. The notification procedure has begun and is ongoing to ensure full legal compliance. I hope Mr. Giorgi will appear so we can continue discussing the situation in villages where, according to him, not a single centimeter of land was lost under his decision to place a checkpoint. However, last week, a Tsaghvli resident testified that the entire forest had been taken over, and Russia advanced further into Georgian territory”, - Tsulukiani said.She noted that this contradiction between Gakharia’s statements and local testimony requires further clarification.“In addition to territorial issues, Gakharia will be questioned about the period from his 2021 resignation to the present, including his and his party’s international activities”, - Tsulukiani added.

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Irakli Beraia appointed Head of Revenue Service

Beraia previously led the Investigation Service of the Ministry of Finance. Born on July 23, 1976, he graduated with honours in Economics from Ivane Javakhishvili Tbilisi State University in 1998.From 2016 to 2025, Beraia served as a member of the 9th, 10th, and 11th convocations of the Parliament of Georgia and also held the position of Deputy Minister of Justice.He succeeds Levan Kakava, who resigned as Head of the Revenue Service on June 16 after serving in the role since 2019.

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Zourabichvili participates in GLOBSEC Forum in Prague

During the forum, Zourabichvili held discussions with Czech President Petr Pavel and French Minister for Europe Benjamin Haddad, focusing on the ongoing developments in Georgia.The press service reported that, in the course of these conversations, Salome Zourabichvili spoke about: “the current situation in Georgia, including the widespread repressions carried out by the Georgian Dream government, the imprisonment of political figures, heavy fines, and the large-scale fines imposed on those who oppose or criticize the government’s foreign policy and domestic policies”.

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Gvaramia, sentenced to imprisonment, arrived at Rustavi Prison No. 12...

Earlier, Nika Gvaramia wrote on social media: "Not a single step back! Our homeland is behind us! The oligarchy must fall! Glory to Georgia!".During the trial, the prosecutor's office requested that the preventive measure imposed on Nika Gvaramia, the 30,000-GEL bail, be replaced with imprisonment. The judge granted the prosecutor's request and replaced Gvaramia's bail imposed as a preventive measure with imprisonment.The accused politician did not pay the bail imposed on him within the period established by law.Nika Gvaramia was summoned to give an explanation before the Temporary Investigative Commission of the Parliament of Georgia, where he did not appear. In this regard, he has been charged under Article 349 of the Criminal Code, which refers to "failure to comply with the request of the Temporary Investigative Commission of the Parliament of Georgia", which is punishable by a fine, or imprisonment for a term of up to one year, or deprivation of the right to hold a position or engage in activity for a term of up to three years.Nika Gvaramia was granted bail of 30,000 GEL as a preventive measure, which was set at 50 days. The aforementioned period expired on June 7.Several other politicians have been arrested on charges of failing to appear at the Tsulukiani Commission. Among them: former Defense Minister Irakli Okruashvili, Nika Melia, co-founder of the Akhali party and leader of the Girchi More Freedom party Zura Japaridze.Criminal cases have also been opened against other politicians for failing to appear at the Tsulukiani Commission, who chose to pay bail rather than imprisonment. These are: Mamuka Khazaradze and Badri Japaridze - 50,000 GEL each, Givi Targamadze - 10,000 GEL, and Giorgi Vashadze - 50,000 GEL.

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Kobakhidze: Hate campaigns in Georgia are externally funded and will b...

“A campaign of hate and contempt is underway in Georgia, and this phenomenon is not unique to our country. Similar externally funded campaigns are taking place in other nations as well, including Hungary. We are closely monitoring these developments and cannot allow such efforts to be successfully planned or carried out.In Georgia, these campaigns are clearly supported by foreign funding, and we will confront them using all legal means. Hatred and contempt hinder the country’s progress, and we have every right—within the bounds of the law—to resist these artificially imposed narratives. There should be no place for such destructive sentiments in Georgian society,” he added.