Bank of Georgia issues Eurobonds

The Bank of Georgia has issued Eurobonds worth $250 million, General Director Irakli Gilauri told media today.

He said that the interest rate of five-year bonds was 7.75 percent.

More than 50 institutional investors from the U.S, Asia, Great Britain, Switzerland, Italy and other European countries claimed for purchasing bonds.

The proceeds obtained from the bond issue will be used to increase the bank's capital, as well as to optimize the average cost of funds of the bank.

He added that a new financial wave will lower interest rates, but it will not be instantaneous. The rates will be reduced in stages over 12 months.

"The funds will be spent to a sharp decline in interest rates," he said. "Certain part will be placed in the credits. But a large part will be spent to reduce the price of the loans."


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