The Georgian government has officially begun the early buyback and placement of new bonds for its $500 million eurobond issued in 2021, with the redemption operation scheduled for completion by January 28, 2026.
Financial analyst Vasil Revishvili expects the new issue’s overall yield to range between 6.2% and 7%. He notes that at 6.5%–7%, this represents a high return in a context of falling global interest rates. “6.2%–6.7% is an excellent balance of risk and reward. Georgia is not Venezuela; the country reliably meets its financial obligations, which is a positive signal for investors,” Revishvili told BMG.
The 2021 eurobond had a coupon of 2.75%, but the current global financial environment has changed significantly. With the U.S. 5-year Treasury yield at 3.82%, the new Georgian bonds cannot fall below this level. Preliminary expectations put the spread at 1.5%–2%. Revishvili also anticipates possible rollovers, where existing investors reinvest in new bonds instead of redeeming in cash.
Global banks including J.P. Morgan, Citigroup, ICBC, and Société Générale are involved in the process, providing confidence in successful placement. Local brokerage services are provided by Galt & Taggart and TBC Capital. The final interest rate will be confirmed after the bookbuilding process concludes.
