Tbilisi (GBC) - IG Development Georgia, the owner of City mall (4 locations Gldani/Saburtalo), announces another tranche of debt securities (bonds) within the framework of the $45 million emission prospectus, which will attract to $15 million.

The largest lessor of the country, which has about 300 unique tenants, has received 98% of its annual (2023) income (88 million GEL) from 4 malls.

The company receives several types of income from tenants: rent (fixed and denominated in USD) and service income (cleaning, maintenance, security...).

Instead of a fixed amount of rent from certain clients, it receives a percentage of the income generated in the rented space for the client, on average 20% of the income.

77% of rental income is fixed. 23% - share according to the income of tenants.

IG Development's $15 million placement (2-year bonds, nominal $1,000) is scheduled for July 8 and will be used to refinance existing liabilities.

The existing interest liabilities are fully denominated in foreign currencies, of which the share of the USD is 81%, EUR - 19%. (01.01.2023: 64%/ 36%, 01.01.2022: 85%/15%). As of the issue prospectus preparation date (12/2023), the obligations are fixed rate, although most of the loans have become variable from February 2024 (unless reserved) with the relevant benchmark (1-month SOFRM) and spread.

The creditor is the Bank of Georgia. The total residual value of loans is equivalent to 80 million GEL in foreign currency. Up to 64 million lari in USD and up to GEL 15 million in Euros.