Tbilisi (GBC) - Energy Development Georgia announces another issue (placement agent: TBC Capital).

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 - 23.06.2027

EDG'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.