The leader in automobile products and services in Georgia “Tegeta Motors” issued the public bonds amounted to 30,000,000 GEL, which is the largest scale transaction in the corporate public bonds segment in the year of 2019. The issuance of the bonds was public and these are the first issued bonds of the company. The issuance of bonds was ensured by the affiliated brokerage company of TBC Bank “TBC Capital”.

The investment in the bonds were made by the resident and non-resident institutional investors (banks, insurance companies, international financial institutions), the admittance of bonds in the listings of the Georgian stock market is planned in the May of 2019. The significant part of the bonds was purchased by the European Bank for Reconstruction and Development (EBRD) and it should be noted that this is the third investment from the EBRD in the listed GEL bonds.

“Tegeta Motors” is the first company in the Caucasus and Eastern Europe, from the automobile field, that managed to receive BB- rating from the international rating company. Only several companies hold such rating in Georgia and it is the unprecedented case in the automobile field of the region. We are glad that we successfully issued the bonds in the amount of 30,000,000 GEL. With the above mentioned project we entered the open financial market for the first time, which opened new and very important prospects for our future development and improvement as on the local as well as on the international markets. We would like to thank our investors that purchased the first bonds of Tegeta Motors, also we would like to thank “TBC Capital” and “BLC” for the successful cooperation”. – said the General Director of Tegeta Motors, Avtandil Tsereteli.

“We are glad that it is another case, when we work with the leading player of the industry – Tegeta Motors and we help the company to seek for the alternative ways of financing by means of financial market. This is the first public bond issued in the automobile products and services sector and it is a significant step forward for the future development of the whole sector and for the creation of financing sources with GEL,” – said Giorgi Tkhelidze, the Director of “TBC Capital”. 

The bonds, the principal amount of which is 30,000,000 (thirty million) GEL and the accrued interest is – 425 base points (spread) added to the monetary interest rate (refinancing) of the National Bank of Georgia, were issued on 30 April 2019, bonds’ nominal value was 1,000 (thousand) GEL and they will be redeemed on 30 April 2022, with their principal value. The funds obtained from the bonds will be used by the company to refinance the bank loans, which will give the company the opportunity to expand the time-terms of the liabilities, diversify the financing structure and access capital markets.

Nowadays “Tegeta Motors” is the leader in Georgian automobile products and services field. “Tegeta Motors”, with its affiliated companies, is an universal company, that operates in the light and truck vehicles, agricultural, construction and manufacturing equipments, spare parts, lubricants, tires and technical service fields. The company offers to the corporate and retail customers high-quality automobile products and wide range of services. In March 2019, the international rating company Scope Ratings GmbH granted the company with the BB- credit rating, with the outlook stable. “Tegeta Motors” is the only company in the automobile products and services field in Georgia, which holds an international credit rating.

 “TBC Capital” is “TBC Bank”-s affiliated and brokerage company that offers its clients investment banking services. From the year 2017 “TBC Capital” became the part of TBC Bank’s corporate and investment banking business. The main business directions of the company are following: financial consulting and credit rating services, issuance of bonds and shares, investment research and broker business. “TBC Capital” is a shareholder of the Georgian stock market and plays an important role in the development of the stock market infrastructure.