Georgia Healthcare Group PLC (“GHG” or the “Group”), announces that its healthcare services business, JSC Evex Medical Corporation (“Evex”), has completed the private placement of GEL 90 million local bonds due 2022 (the “Bonds”). JSC Galt & Taggart acted as a placement agent for the Bonds. The Bonds were priced at an issue price 100% of their principal amount on 12 July 2017. They carry a floating coupon rate of 350 basis points premium over the National Bank of Georgia Monetary Policy (refinancing) Rate. The proceeds will be used to refinance borrowings from local commercial banks, which are a relatively more expensive source of funding, and also to fund planned ongoing capital expenditures.
“I am very pleased that Evex has completed another landmark transaction demonstrating our superior access to capital. I am glad that the transaction was met with considerable interest from investors, and we completed the largest private placement of any corporate (other than commercial banks) in local currency ever done in Georgia. The issuance helps us to further build a longer-term, less expensive funding profile and contributes to the successful implementation of our strategy” commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.