GEORGIA'S SILKNET RAISES $300m IN LANDMARK EUROBOND ISSUE

TBILISI, Georgia, Feb. 1, 2022 /PRNewswire/ -- Georgia's leading telecommunications company, Silknet, has successfully raised $300m in a new bond issue. The new Eurobond will see the company join JP Morgan's CEMBI Index, one of the leading listings of emerging market bonds, for the very first time.

The new figure represents a $100m increase on what the company raised in an earlier funding round back in April 2019 and follows an improved outlook from ratings agency Moody's. The proceeds were used, in part, to pay for the call on the prior Eurobond. The issue also saw a substantial reduction in the coupon rate to 8.375% from 11%, with a comparable yield to other major telecoms operators in the region, such as Turk Telekom, demonstrating the company's strong investment prospects.

Speaking on the news, Silknet CEO David Mamulaishvili said: "This successful fundraising is testament to how far Silknet has come in recent years. The new financing will improve the company's liquidity and help ensure we continue to deliver a high-quality service to our clients. Silknet is at the forefront of delivering high-quality, reliable communications services across Georgia. Today's news shows international investors recognise the strength of the business and its potential for future growth."

George Ramishvili, Silknet Chairman, said: "This successful refinancing is another sign that international markets increasingly recognise the significant investment potential Georgia has to offer. It is testament to the hard work of the Silknet team that we are today able to raise significant funds to continue to develop and grow the country's flourishing telecoms sector."

Furthermore, following proactive engagement with ESG rating's agency, Sustainalytics, they announced an improved ESG risk score for the company. Silknet now sits at the higher end of global telecoms companies in terms of the sustainability of their operations. 

The successful bond issue came despite a relative lack of new issues from emerging markets in recent months.

NOTES TO EDITORS

Key Facts­

• The proceeds of $300m Silknet bond issue will redeem the $200m issue raised in April 2019, with the rest designated primarily for general corporate purposes
• The coupon rate for the new bond will be 8.375%, a reduction from 11% on the previous bond
• JP Morgan's CEMBI Index tracks the performance of U.S. dollar denominated corporate bonds from emerging markets
• Sustainalytics reduced Silknet's ESG risk rating from 27.5 to 26.1, putting it in the top half of global telecoms company, in December 2021

About Silknet

Silknet is Georgia's leading telecommunications provider, delivering mobile, fixed broadband, pay television and fixed-line services to approximately two million customers across the country. The company started operating in 2010 as a fixed-telecom operator. In 2018 Silknet acquired major domestic mobile service provider, Geocell, in what was the largest purchase of one company by another in Georgian history. Silknet is a subsidiary of Silk Road Group, founded by Chairman George Ramishvili, which also operates businesses in the hospitality, entertainment real estate, energy and banking sectors.