Tbilisi, Georgia — MP Development has successfully placed USD 6.3 million and EUR 5.3 million in one-year bonds under its USD 57 million bond program. The transaction was arranged by TBC Capital and Galt & Taggart, acting as placement agents.
The issuance was completed under the Capital Market Support Programme of the Georgia Development Corporation and is expected to be listed on the Tbilisi Stock Exchange.
The bonds were placed with individual investors. The USD-denominated tranche carries a 7.50% annual coupon, while the EUR-denominated tranche offers a 6.50% coupon. The proceeds will be used to refinance existing debt and finance the company’s future development projects. The successful placement enabled MP Development to significantly improve its funding costs while raising additional capital amid strong investor demand.
“Congratulations to MP Development on another successful transaction. The company is one of the most active issuers in Georgia’s capital market, and with this latest placement, it has issued more than USD 29 million and EUR 8 million in bonds. We are pleased to continue our partnership, having successfully completed our fourth and fifth bond issuances together. Through this collaboration, we are jointly contributing to the development of Georgia’s local debt capital market.
Since the beginning of the year, TBC Capital has helped six companies raise financing. Across ten transactions, we have placed corporate bonds worth GEL 400 million, allowing us to maintain our leading position with a 60% market share in Georgia’s local corporate bond market,” said Otar Sharikadze, Director of TBC Capital.
“I would like to congratulate MP Development on the successful placement of USD 6.3 million and EUR 5.3 million in bonds. This marks our second successful cooperation under the government’s Capital Market Support Program. The company’s debut bond issuance, completed through the program, was another clear example of how new issuers can successfully access Georgia’s capital market.
We are pleased to see the capital market becoming an increasingly effective source of long-term financing for Georgian businesses, with more companies recognizing it as an important driver of growth. The Georgia Development Corporation will continue to actively support similar initiatives, as the development of the capital market remains one of our strategic priorities,” said Irakli Gabriadze, Director of the Georgia Development Corporation.
“With the support of our partners, we are delighted to have successfully completed another bond issuance this year. Strong investor confidence in MP Development, together with the successful track record of our previous issuances, allowed us to return to the market with an even larger offering. As part of our USD 57 million bond program, we successfully placed USD 6.3 million and EUR 5.3 million in bonds.
On behalf of the MP Development team, I would like to thank TBC Capital, Galt & Taggart, and the Georgia Development Corporation for their invaluable support in making this transaction a success. We are particularly encouraged by the strong investor demand for the current issuance, as well as by the willingness of our existing investors to participate once again. This is another testament to the market’s confidence in our company and its positive assessment of our long-term growth strategy.
For the past 14 years, MP Development has consistently delivered stable growth. We believe this consistency and our proven results continue to strengthen the market’s trust in our company,” said Papuna Katsitadze, Director of MP Development.
