MP Development, under the " Enterprise Georgia " capital market support program by the Ministry of Economy and Sustainable Development, has issued bonds worth 3 million euros and 5 million USD with the support of TBC Capital and Galt & Taggart. These bonds are planned to be listed on the Georgian Stock Exchange.
The interest rate for the euro bonds is set at 7.75%, while the dollar bonds will have an interest rate of 8.75%.
These securities are available to both legal entities and resident and non-resident individuals.
Investors will receive benefits every six months, and the principal amount of the bonds will be repaid over a period of 2 years.
MP Development is the first beneficiary of the capital market support program under the "Make in Georgia" agency.
According to Irakli Gabriadze, Deputy Director of the agency, the goal of the program is to improve access to finance for small and medium-sized businesses and to promote the capital market by stimulating the issuance of securities.
"According to the program, companies have the opportunity to receive co-financing for expenses related to the issuance of securities. This co-financing covers both the successful placement fee and the costs associated with obtaining a credit rating. The agency's partner in this program is USAID's Financial Innovation Program, which, together with the agency, covers the costs related to the placement," noted Irakli Gabriadze. He added that, in promoting the issuance of securities, the program plans to support up to 15 beneficiaries in 2024, who are expected to attract up to 150 million additional investment resources to the stock market.
"It is very important for our company that we have reached our set goal. The debut issue of bonds was successful, with demand significantly exceeding the volume of bonds issued. I would like to thank our company’s team, as well as the Enterprise Georgia agency, TBC Capital, and Galt & Taggart for their support. The role of our bondholders is crucial," said Papuna Katsitadze, Director of MP Development.
"I am pleased that, within the framework of 'MP Development' and the capital market support program, the debut bonds were successfully issued with our support. It is crucial for the capital market to develop with state backing, allowing companies to issue securities with co-financing. Together, we are fostering the creation and development of alternative financing mechanisms in the country. The investor component is also important—through this issuance, we are providing both resident and non-resident individuals with the opportunity to diversify their investments in alternative and varied currencies. We hope that, with the support of the program, many companies will achieve similar success," said Mary Chachanidze, Managing Director of TBC Capital.
"For Galt & Taggart, the development of the capital market and the stimulation of securities placement remain top priorities. We are pleased to see MP Development's debut bonds issued under the capital market support program. It is particularly gratifying to witness the significant progress of this program and its role in bringing new players into the market. The strong interest from investors in MP Development's issue underscores the successful execution of this transaction. We look forward to working together with MP Development and the Capital Market Support Program to offer a range of successful deals to the market," said Ketevan Toidze, Deputy Director of Galt & Taggart.
"MP Development" owns and manages a diversified investment property portfolio that includes 13 shopping centers and 4 gas stations in major cities across Georgia.
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