November 15, 2019 / 4:05 PM / a month ago

Georgia's state energy company to issue 300 mln euro Eurobonds in 2020

TBILISI, Nov 15 (Reuters) - Georgia’s state Oil and Gas Corporation (GOGC) plans to issue Eurobonds worth 300 million euros ($331 million) in April 2020, the company’s senior official said on Friday.

“We plan to place Eurobonds on the London Stock Exchange again,” Omar Ogbaidze, GOGC chief financial officer, told Reuters.

GOGC issued 5-year Eurobonds worth $250 million on the London Stock Exchange in 2016 to refinance a previous same-sized issue in 2012. J.P.Morgan acted as book-runner of the 2016 issue.

Ogbaidze said proceeds would be used to refinance a previous issue maturing in 2021 and also to finance construction of a third power plant in Gardabani.

The plant’s cost is estimated at $180 million, he said.

“We will have $70-$80 million left after refinancing the previous issue and will use an additional $100 million from our operating profit to finance the construction of the plant,” said Ogbaidze.

He said corporation representatives had preliminary meetings with potential investors and planned to hire book-runners in two to three weeks among eight to ten banks.

S&P rating agency in October raised GOGC’s long-term issuer default rating to ‘BB-‘ from ‘B+’ with a stable outlook.

$1 = 0.9074 euros Reporting by Margarita Antidze; Editing by Andrew Cawthorne

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