Baker McKenzie advised Georgia on record $500 million notes issuance at the lowest interest rate in Georgian history
Leading global law firm Baker McKenzie has advised Georgia to tide over its monetary requirements by acting through the Ministry of Finance of the East European nation on the issuance of $500 million 2.75 per cent notes due 2026, which incidentally is the lowest interest rate achieved for issuance of notes in the Georgian history.
"We are delighted to have helped advise the Ministry of Finance of Georgia on this record-breaking notes issuance. The transaction reflects Baker McKenzie's leadership position in emerging markets and the latest example of our full-service capital markets offering," Megan Schellinger, corporate finance partner at Baker McKenzie in London, said.
Maxim Khrapov, corporate finance senior associate at Baker McKenzie in London said of the deal, "We are glad to continue contributing to the Georgian success story with this deal as a great example of the issuer, its investment banks and advisors collaborating to quickly and efficiently launch and complete a successful transaction against the backdrop of COVID-19."
Both Schellinger and Khrapov were part of the Baker McKenzie team which was led by capital markets partner Roy Pearce. They were assisted by junior lawyer Charlene McAuley (Belfast) while Baker McKenzie's New York office provided US Tax Advice.
Goldman Sachs International and J.P. Morgan acted as Joint Global Coordinators, with Goldman Sachs International, ICBC and J.P. Morgan as Joint Bookrunners and Galt &Taggart and TBC Capital as Co-managers. While Linklaters acted as lead counsel to the banks, BGI acted as local counsel to the banks. BLC acted as local counsel to the country of Georgia.
The Ministry of Finance transaction is the latest in a string of debt deals that Baker McKenzie have completed in Georgia in the recent past. Other transactions in the list include the $65 million tap issue of 6.125 per cent notes due 2023 by JSC Georgia Capital and the $250 million 7.75 per cent notes due 2025 by JSC Georgia Global Utilities. Together with the issuance by the Republic of Armenia of $750 million 3.60 per cent notes due 2031.
The offering was announced on 13 April 2021 and settled on 22 April 2021.