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JSC Bank of Georgia (BGEO)

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Tuesday 30 October, 2007

JSC Bank of Georgia

Issue of Debt

Bank of Georgia
                  

 JSC Bank of Georgia Received A US$15 Million Subordinated Facility From A Fund
                     Affiliated with HBK Capital Management.

Bank of Georgia (LSE: BGEO, GSE: GEB), the leading Georgian universal bank,
announced today that it has received a US$15 million, 10-year, subordinated loan
facility (the 'Facility') from Semper Augustus B.V., a fund affiliated with HBK
Capital Management ('HBK'), one of the leading hedge fund managers in the world.

HBK has an option to convert the Facility into any publicly placed subordinated
debt transaction executed by Bank of Georgia within two years from the date of
the disbursement of the Facility. Bank of Georgia has an option to prepay the
Facility after five years from the signing date.

'I am delighted to have completed the second transaction with HBK, who is also a
shareholder of the bank, having converted recently the first convertible
subordinated loan facility of US$25 million they extended to Bank of Georgia in
September 2006. I would also like to congratulate our funding team on executing
this transaction in a timely fashion, the current market environment
notwithstanding', commented Lado Gurgenidze, Chairman of the Supervisory Board.

About Bank of Georgia

Bank of Georgia, a leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with a 34% market share by total assets (all data according to the NBG
as of 30 September 2007). The major component of Galt & Taggart Index, the bank
has 109 branches, over 595,000 retail and over 60,000 corporate current accounts
as at 30 September 2007. The bank offers a full range of retail banking and
corporate and investment banking services to its customers across Georgia. The
bank also provides a wide range of corporate and retail insurance products
through its wholly-owned subsidiary, Aldagi BCI, as well as asset & wealth
management services.

Bank of Georgia has, as of the date hereof, the following credit ratings:

-0-
*T
Standard &      'B+/B'                 Stable
 Poor's
Moody's         'B3/NP' (FC) & Ba1/P-3 Stable
                 (LC)
Fitch Ratings   'B+/B'                 Stable
*T

For further information, please visit www.bog.ge/ir or contact:

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Lado Gurgenidze       Nicholas Enukidze        Irakli Gilauri  Macca            Thea Jokhadze
                                                                Ekizashvili
Chairman of the       Vice-Chairman of the     Chief Executive Head of Investor Head of Debt Capital
 Supervisory Board     Supervisory Board        Officer         Relations        Markets
+995 32 444 103       +995 32 444 800          +995 32 444 109 +995 32 444 256  +995 32 444 192
lgurgenidze@bog.ge    nicholas.enukidze@bog.ge igilauri@bog.ge ir@bog.ge        tjokhadze@bog.ge
*T

This news report is presented for general informational purposes only and should
not be construed as an offer to sell or the solicitation of an offer to buy any
securities. Certain statements in this news report are forward-looking
statements and, as such, are based on the management's current expectations and
are subject to uncertainty and changes in circumstances.