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Oct 28, 2019

Fixed Income Securities in Georgia - Report Update 3Q 2019

Financial Market Reports

  • The total stock of outstanding Georgian bonds increased by 41% Y-o-Y (32% excluding FX effect) by the end of 3Q2019, mainly on the back of local corporate bonds and Eurobonds.
  • Georgia is getting closer to an investment grade rating, which is reflected on the sovereign Eurobond performance as well as increased ownership of local treasuries from non-resident individuals and institutions.
  • Bringing in new investment opportunities for those with USD appetite, four new Eurobonds from Georgian corporates increased the outstanding stock by 72% Y-o-Y in 3Q2019.
  • The outstanding amount of IFI bonds issued in Georgia, represented by 16 bonds from five IFIs, saw a 24% Y-o-Y increase in 3Q2019.
  • The value of newly issued local corporate bonds saw a 161% Y-o-Y increase in 3Q2019. Additionally, a USD 35mln bond by M2 Real Estate and a GEL 28mln bond by Nikora were issued in early October 2019.
  • At end 3Q2019 in total 22 bonds with total nominal value of GEL 2,851mln were listed on the GSE.
  • A new trend of dual-listing has emerged, with three new Eurobonds listed on the GSE at end 3Q2019.
  • With the investment council as well as the chief risk officer in place and GEL 351mln at end 3Q2019, the Pension Agency is expected to start investing in plain vanilla financial instruments from the beginning of 2020.
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