Georgia: EBRD invests in Nova’s inaugural bond issuance

The European Bank for Reconstruction and Development (EBRD) is investing up to GEL 10 million (€3.2 million) in the debut local currency bond issuance of Nova Group, a leading Georgian producer and retailer of construction and home improvement materials.

The Bank announced on 24 December, that the GEL 50 million (€16 million) bond issuance would be listed on the Georgian Stock Exchange. It is expected to have a tenor of up to five years. Proceeds will be used to fund capital expenditure, meet working capital needs and refinance existing loans.

“This transaction is a significant milestone for Nova and represents an important step in the development of Georgia’s domestic capital markets,” the EBRD said in a press release. “Nova, which was established in 2006 as a producer of roofing materials, has grown into one of Georgia’s leading manufacturers and retailers of construction materials.”

In addition to the provision of financing, the EBRD will also help Nova to implement a corporate governance action plan. This will include measures aimed at strengthening board operations, internal controls and ethical standards, reinforcing Nova’s commitment to best practices.

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Press release