Bank of Georgia
JSC Bank of Georgia To Raise Approximately US$100 Million Through The Offering
Of New Ordinary Shares In The Form Of Global Depositary Receipts
JSC Bank of Georgia (LSE: BGEO, GSE: GEB, 'Bank of Georgia' or the 'Bank') today
announces its intention to raise approximately US$100 million through an
offering (the 'Offering') of new ordinary shares (with a nominal value of GEL
1.00 per share) in the form of global depositary receipts ('GDRs'). The proceeds
of the Offering will provide required capital for the Bank's planned domestic
growth and international expansion.
The Offering marks Bank of Georgia's first return to the international equity
capital markets since its successful US$160 million initial public offering
('IPO') in November 2006.
The Offering will be made available to international institutional investors. It
is Bank of Georgia's intention to prioritise allocations to existing
shareholders. Funds managed by two of the Bank's shareholders who have
representation on the Bank's Supervisory Board, Firebird and East Capital, have
indicated their intention to participate in the Offering.
In connection with the Offering, Bank of Georgia has agreed to a lock-up with
respect to the issuance of new equity for three months, subject to standard
ING Bank (the 'Manager') is acting as Sole Bookrunner for the Offering.
Unicredit Group is Joint Lead Manager and Galt and Taggart Securities, the
Bank's brokerage subsidiary, is acting as Selling Agent.
Pricing will be determined pursuant to a bookbuild process managed by the
Manager. The Offering is expected to close at 5pm GMT on 12 February 2007.
Speaking on the Offering, Acting Chairman of the Supervisory Board of the Bank
of Georgia, Nicholas Enukidze, said 'We are delighted with the ongoing support
we have received from our shareholders since our successful IPO in November
2006. This second equity offering marks a significant milestone for the Bank in
its capital markets development. With the proceeds, we expect to further
consolidate our leading position in the Georgian market and pursue new
opportunities in the region.'
* * *
This announcement (and the information contained herein) shall not constitute or
form any part of any offer or invitation to subscribe for, underwrite or
otherwise acquire, or any solicitation of any offer to purchase or subscribe for
securities in any jurisdiction where such activity is unlawful. In particular,
this announcement is not for release, directly or indirectly, in or into the
United States of America, Australia, Canada or Japan.
The securities referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold in
the United States or to U.S. persons unless they are registered under the
Securities Act or pursuant to an available exemption therefrom. This
announcement (and the information contained herein) does not contain or
constitute an offer of securities for sale in the United States or to US persons
and no public offering of securities is being made in the United States or to US
persons. This announcement may not be distributed or published, directly or
indirectly, in or into the United States. Any action contrary to these
restrictions may constitute a violation of US securities law.
This communication is being distributed only to and is directed only at (a)
persons outside the United Kingdom, (b) persons who have professional experience
in matters relating to investments, i.e., investment professionals within the
meaning of Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the 'Order'), and (c) high net worth
companies, unincorporated associations and other bodies to whom it may otherwise
lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order
(all such persons together being referred to as 'relevant persons'). The
securities are available only to, and any invitation, offer or agreement to
subscribe, purchase or otherwise acquire such securities will be available only
to or will be engaged in only with, relevant persons. Any person who is not a
relevant person should not act or rely on this communication or any of its
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 35% market share by total assets (all data according to the NBG as
of 31 December 2007). The major component of the Galt & Taggart Index, the bank
has 117 branches and over 705,000 retail and more than 64,000 corporate current
accounts. The bank offers a full range of retail banking, corporate and
investment banking and asset & wealth management services. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary Aldagi BCI.
Bank of Georgia has, as of the date hereof, the following credit ratings:
Standard & Poor's: 'B+/B', Stable
Moody's: 'B3/NP' (FC) & 'Ba1/NP (LC), Stable
Fitch Ratings: 'B+/B', Stable
For further information, please visit www.bog.ge/ir or contact:
Nicholas Enukidze Irakli Gilauri Macca Ekizashvili Chris Godman
Acting Chairman of the Chief Executive Officer Head of Investor Relations ING
+995 32 444 103 +995 32 444 109 +995 32 444 256 +44 20 7767 6896
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