Tbilisi (GBC) - The position of Georgia's sovereign Eurobond (GEORG) has improved, it was traded at a yield of 6.4%. The decline has been observed since September. In August, the rate was up to 6.7%.
According to G&T statistics, the price reached 95. The first week of October closed with 94.7.
5-year bonds, at 2.75%, were issued in April 2021. At the moment, the Z-spread of the security is 260.6 bps (basis point - %pX100). The z-spread is a variable, discounting the spread over its comparable US Treasury bond.
The price of Georgian Railway Eurobond (GRAIL) has also increased. According to G&T Stats, it is trading at 90.7, yielding 6.9%.
The railroad's 7-year green bonds were also placed in 2021, covering the $500 million bonds issued in 2012 (10-year maturity, rate -7.75%), with 7-year green Eurobonds (4% yield) before maturity.
According to G&T investment bankers, the stability of GEORG is determined by healthy macroeconomic parameters, including a Reduction of debt (domestic and foreign) ratio, a low rate of fiscal deficit, which reduces the country's riskiness and affects investors' sentiments. In addition, GEORG's spread to its comparable US Treasury bond has narrowed significantly to 2.5%.