Tbilisi (GBC) - The Bank of Georgia has issued perpetual subordinated bonds $300 million worth. The price of the bonds was set at 9.5%.

The placement agents and managers of the transaction are such large investment companies as: Citigroup; J.P. Morgan; BCP Securities. The co-manager of the transaction is Galt & Taggart.

The securities will be listed on the Irish Stock Exchange and will be rated at B- (Fitch) and B2 (Moody's).

The transaction is due to close on April 16, and the issue price is 100%.

As of 4Q23, the bank's regulatory Tier 1 capital is GEL 4.6 billion, common equity capital is GEL 4.2 billion, and the regulator's capital requirement is GEL 3.85 billion, while common equity capital is GEL 3.3 billion.

To remind, acquisition of Ameriabank by BOGG and Bank of Georgia last week was also confirmed by the Armenian regulator. As a result, BOGG will acquire 60% of Ameriabank (70,279 shares) and Bank of Georgia - 30% (35,140 shares). The total transaction value  (100% of the shares) is $303.6 million, of which $252 million is payable upon completion of the transaction, and $21 million after 6 months. The remaining 10% is retained by the EBRD, subject to redemption.




Capital ratios as of 4Q23

NBG’s Demand

Basic primary capital ratio



Initial capital ratio



Supervisory capital ratio