BAKU, Azerbaijan, November 26
By Tamilla Mammadova – Trend:
Asian Development Bank (ADB) has raised 85.05 million lari ($28.6 million) from its first Georgian lari-denominated bonds issued in the offshore market, Trend reports referring to ADB.
The bonds pay a floating rate coupon based on the 6-month Tbilisi Interbank Rate (TIBR), a risk-free benchmark interest rate introduced by National Bank of Georgia (NBG) in March 2019.
The term TIBR rates are calculated using backward-looking term rate compounding methodology linked to the historical overnight TIBR index.
“ADB is a strong supporter of local currency bond markets,” said ADB Treasurer Pierre Van Peteghem.
The issue is structured as a linker bond denominated in Georgian lari but settled in US dollars, and is documented under ADB’s Global Medium-Term Note program. The bonds feature an amortizing profile with final maturity in July 2021.
ADB has previously relied on bond issuance in the domestic Georgian capital market to support its local currency projects. This time, ADB turned to the offshore market to raise funds from international investors.
“NBG welcomes ADB’s continued efforts to support local currency lending in Georgia,” said NBG Vice Governor Archil Mestvirishvili.
ADB is a regular borrower in international bond markets but has also led issuance in developing Asian countries as part of efforts to promote bond markets as an alternative to bank lending.
In addition, in 2019 ADB has issued bonds in Indian rupees, Indonesian rupiah, Kazakhstan tenge, and Philippine pesos.
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