Georgia’s Pension Fund has invested USD 20 million in a USD 500 million government Eurobond issued in January 2026, the fund’s latest financial report stated.
The newly issued Eurobond has a five-year maturity and carries a coupon rate of 5.12%. With this investment, the Pension Fund has significantly increased its exposure to Georgian sovereign debt. The fund also held USD 9.9 million in the government’s previous Eurobond, issued in 2021, effectively doubling its holdings in state-issued Eurobonds.
The 2021 Eurobond carried a lower coupon of 2.75% at a time when U.S. dollar funding costs were substantially lower, with the five-year U.S. Treasury yield standing at around 0.4%. By January 2026, the yield on five-year U.S. Treasuries had risen to 3.82%.
Despite higher global interest rates, the spread between Georgia’s sovereign debt and U.S. Treasuries has narrowed, indicating improved investor confidence. In 2021, the spread stood at 2.35% compared with approximately 1.3% for the 2026 issuance.
The Georgian government completed the refinancing of the 2021 Eurobond on January 23, 2026, as part of its broader debt management strategy to extend maturities and optimizing borrowing costs.
