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Which are private investment stage businesses, comprising 11.7% of GCAP’s total portfolio value?

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Elene Kvanchilashvili
16.11.20 13:30
690
The report on Georgia Capital PLC Q20 and 9M20 results shows that the two main fields are open for GCAP’s investments. Namely:

Renewable Energy (8.4% of total portfolio value) – The strong performance of Qartli Wind farm in 3Q20 led to an increase in the related run-rate EBITDA earnings used for valuation as of 30-Jun-20. 9M20 EBITDA for Qartli wind farm was already GEL 11.2 million, and therefore the run-rate EBITDA was revised from GEL 12 million at 30-Jun-20 to GEL 14 million as of 30-Sep20. As a result, operating performance-related growth in the value of the business was GEL 12 million. The valuation was also favorably impacted by FX movements, since Renewable Energy’s revenues are fully denominated in US$ dollars. Accordingly, GEL 16 million value was created in 3Q20, which led to the fair value increasing to GEL 201 million.

Investments in our pipeline renewable energy projects and Mestiachala HPPs continued to be measured at equity investment cost of GEL 109 million in aggregate. At 30-Sep-20, total enterprise value (EV) and net debt was GEL 478 million and GEL 277 million in the renewable energy business, respectively. The distribution of EV and net debt by projects was as follows: GEL 444 million and GEL 282 million in all operating assets, of which, GEL 187 million and GEL 117 million in Mestiachala HPPs.

Education (3.3% of total portfolio value) – The third quarter is characterized as being the slowest quarter for the education business, given that the schools are not operational in Jul-Aug due to holidays. The valuations multiple, LTM EBITDA earnings and assigned equity value remained all largely unchanged in 3Q20. In September 2020, all of our schools resumed operations, providing on-campus teaching for learners below 7th grade and distance teaching for the remaining grades due to COVID-19.