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The EBRD and EU Award Major Business Grants to 7 Georgian Companies

Launched 18 months ago, the Capital Market Support Program has successfully supported the establishment and implementation of mechanisms to expand the capital market in Georgia. This significant initiative, funded by the European Union (EU), was carried out by the capital market development team of the European Bank for Reconstruction and Development (EBRD). Consultancy work for the program was performed by Galt & Taggart in collaboration with BDO Georgia.

Through the program, grants were awarded to seven companies to co-finance the costs associated with the issuance of securities. These companies include:

  • Georgian Renewable Power Operations
  • Crystal
  • MBC
  • Rico Group
  • TBC Leasing
  • Tegeta Holding
  • Energy Development Georgia.

Over the past 18 months, the program has made substantial contributions to the development of the local capital market. A total of 21 applicants from 13 sectors registered to participate in the co-funding initiative. This achievement is particularly noteworthy considering that in 2021, Georgia had only 12 outstanding corporate bond issuers. The issuances included the first gender and green bond ever issued on Georgia’s capital market.

Out of the 21 registered candidates, 11 successfully placed securities on the market, with a combined value of GEL 700 million. This success has led to the emergence of new players in the Georgian market who are committed to Environmental, Social, and Corporate Governance (ESG) principles. As a result, the program has introduced five "innovative" securities to the Georgian markets, including three green bonds, one gender bond, and one sustainability-linked bond.

The Capital Market Support program was implemented in several stages:

  1. In the first stage, a comprehensive study of the potential of the Georgian capital market was conducted, identifying barriers that hinder potential issuers from accessing stock market resources.
  2. The second phase focused on creating a capital market incentive mechanism to facilitate market uptake for selected companies through the issuance of debt and/or equity securities.
  3. The final stage culminated in the announcement of the program winners, highlighting their exceptional achievements.

Education played a crucial role in the program's success. Over the past 18 months, eight meetings, including webinars and masterclasses, were conducted. These sessions were attended by more than 100 participants, including representatives from the National Bank of Georgia (NBG), relevant ministries, investment banks, and commercial banks.

The Capital Market Support program has been instrumental in driving the development of the Georgian capital market, fostering economic growth, and promoting sustainable investments. It has created opportunities for companies to access resources and has encouraged the adoption of ESG principles within the market. The program's impact is a testament to the commitment of all stakeholders involved in strengthening Georgia's financial ecosystem.