What are the motivations of Silknet behind taking a new step by issuing the first Georgean Depositary Notes? CEO of Silk Road Bank, Ilia Enukashvili, informs The CheckPoints.
Silknet is now issuing Georgean Depositary Notes. According to Enukashvili, 'Depositary Notes' is a freshly coined term because they are not commonly used. This is a term for when a credit instrument is transported into a different jurisdiction and a different mechanism of investing in securities.
"Aim of such creation was purely the cultivation of a local investor base interested in buying Silknet securities in the future. We want to make sure that many investors want and can invest in Silknet and securities. It's as simple as that," - Enukashvili said.
According to him, only a handful of instruments are available right now and a handful of companies that issue bonds. "We don't have an equity market to speak about. And any new issuance is usually welcomed by investors. When we compare the size of the capital market in Georgia with the size of the deposits in the banks, there's a huge gap. The country needs functioning capital markets for the economy to develop. Every new instrument that gives additional confidence and additional means of investing should be welcome," - he said.
Enukashvili hopes that other companies will follow, and the number of investors who regularly invest in the market will grow.
