TBC Capital has successfully acted as the exclusive arranger for Tegeta Motors’ latest corporate bond issuance, supporting the placement of USD 20 million in bonds under the company’s USD 60 million multi-currency bond program.
The issuance comprised two tranches: USD 15 million in two-year bonds and USD 5 million in six-month bonds.
The six-month tranche marks a significant milestone for Georgia’s capital market, becoming the first corporate bond with a maturity of less than one year ever issued in the country. The transaction represents another important step in the development and diversification of Georgia’s local debt capital market.
The two-year bonds carry a 7.00% coupon, while the six-month tranche was priced at 5.75%. Notably, the two-year bonds feature the lowest coupon ever achieved for U.S. dollar-denominated corporate bonds issued by a non-bank institution in Georgia’s local capital market.
The proceeds from the issuance were used to refinance Tegeta Motors’ existing bonds, enabling the company to significantly reduce its financing costs and further optimize its capital structure.
“Tegeta Motors is one of the most active and innovative issuers in Georgia’s capital market. Together, we have introduced several landmark transactions, including the country’s first GEL-denominated green bonds, the first GEL-denominated sustainability-linked bonds, and the first amortizing corporate bonds. We are pleased that our long-standing partnership has now delivered yet another market first—the issuance of Georgia’s first-ever corporate bonds with a maturity of less than one year.
This transaction once again demonstrates TBC Capital’s ability to structure and execute innovative capital market solutions while helping leading Georgian companies optimize their financing through tailored funding strategies. Since the beginning of this year alone, TBC Capital has supported five companies in raising capital, successfully completing eight bond transactions with a total value of GEL 365 million. As a result, we continue to maintain our leadership position, holding a 73% share of Georgia’s local corporate bond market,” said Otar Sharikadze, Director of TBC Capital.
Ekaterine Kavtaradze, Chief Executive Officer of Tegeta Holding, highlighted the strong investor demand and the strategic importance of the transaction.
“We are delighted that Tegeta Motors’ latest bond issuance was successfully completed amid strong investor interest. The launch of the six-month tranche represents another historic achievement, introducing Georgia’s first corporate bond with a maturity of less than one year, while the two-year tranche achieved the lowest coupon among U.S. dollar-denominated bonds issued by non-bank institutions in the local market. These results reflect investors’ strong confidence in Tegeta Motors.
The proceeds have enabled us to refinance our outstanding bonds and significantly improve our financing costs. Together with TBC Capital, our long-term strategic partner, we have completed another successful and innovative transaction that further strengthens Tegeta’s position as one of the most active issuers in Georgia’s capital market.”
