Issuance of bonds by GHG's hospitals business
London, 7 November 2019
GHG's hospitals business issues GEL 50 million bonds with historically
low margin on Georgian market
Georgia Healthcare Group PLC ("GHG"), announces that its hospitals business, JSC Evex Hospitals ("Evex Hospitals"), has completed the public placement of GEL 50 million unsecured local bonds due 2024 (the "Bonds") on the Georgian market. JSC Galt & Taggart acted as a lead manager for the Bonds. The Bonds were priced at an issue price 100% of their principal amount on 6 November 2019. They carry a floating coupon rate of 310 basis points premium, being the historically lowest margin floating rate among corporate bond issuances on the Georgian market, over the National Bank of Georgia Monetary Policy (refinancing) Rate. The proceeds will be used to refinance more expensive borrowings.
"I am delighted that Evex Hospitals has successfully completed another landmark transaction, the placement of bonds with the lowest margin that any corporation has ever done in Georgia. The transaction was met with considerable interest from investors, with a key investor being the European Bank for Reconstruction and Development ("EBRD"), demonstrating our superior access to capital. The issuance of bonds helps us to further decrease our cost of funding, contributing to the healthy growth of the business. I also want to thank the Galt & Taggart team, our long-standing partner, for their support throughout the process," commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.
Catarina Bjorlin Hansen, EBRD Regional Director for Caucasus, said: "This is our fourth transaction with Evex since 2016, when EBRD provided financing facility for renovation and refurbishment of a hospital in Tbilisi. We are delighted to be part of this important deal, contributing towards the development of more efficient and deeper local currency capital markets. The transaction sends a strong signal that bonds are a viable source of local currency funding for the private corporate sector."
Name of authorised official of issuer responsible for making notification:
Ketevan Kalandarishvili, Head of Investor Relations
About Georgia Healthcare Group PLC
Georgia Healthcare Group PLC is a UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian healthcare services market. GHG's leadership position is underpinned by offering the most comprehensive range of inpatient and outpatient services targeting the mass market segment through its vertically integrated network of 18 hospitals and 34 clinics. GHG is the single largest market participant, accounting for 24% of total hospital bed capacity in the country, as of 30 June 2019. GHG is also the largest pharmaceuticals retailer and wholesaler in Georgia, with approximately 30% market share by revenue. GHG is the second largest provider of medical insurance in Georgia with a 31% market share based on net insurance premiums earned and approximately c.230,000 insurance customers. GHG employed a total of c.16,200 people as at 30 June 2019, including c.3,600 physicians and 3,000 pharmacists.
For further information, please visit ghg.com.ge or contact:
Nikoloz Gamkrelidze | Irakli Gogia | Ketevan Kalandarishvili |
CEO | CFO | Head of Investor Relations |
+995 322 550505 (5077) | +995 322 550505 (5088) | +995 322 550505 (5079) |
This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities
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