JSC “BG Capital” completed a four-day non-deal road show in the USA for Georgian Railway, covering three major cities and meeting with over 20 leading investment funds.
The trip was designed to raise awareness of Georgian Railway’s debut USD 250 mln bond issue and meet with current bond holders.
Georgian Railway, the country’s national railway monopoly, met with over 20 leading investment funds last week including: Templeton Asset Management, Morgan Stanley Asset Management, Fidelity Investments, Eaton Vance and Citadel on a four-day road show with stops in New York, Boston and Chicago.
Representing BG Capital was Head of Sales – Lucas Romriell from Kiev and Sales Manager – Giorgi Shengelia from the Tbilisi office. Representing Georgian Railway was the company’s CFO – Giorgi Gagnidze and Business Development Manager – Irakli Gejadze.
“Meetings with fund managers in New York, Boston and Chicago were very positive. US-based investors were genuinely impressed with Georgia’s ability to survive a war and global economic crisis without straying from its economic and political reforms. The funds that met with Georgia Railway were pleased with the management and are eager to see more investment offering from the company in the future”, said Lucas Romriell.
BG Capital, Georgian Railway’s corporate broker and market maker, has traded nearly USD 50 mln worth of paper since issue. Moreover, Georgian Railway’s Eurobond (GRAIL 9.875% 2015) has been among the top performers in the Emerging Market Eurobond space. Riding a wave of EM buying support this autumn, the bond has rallied from a 10% yield at new issue to 7.9%, a move of nearly 8 points to 107.5. The sovereign ownership and support has kept it on the radar for investors and even in the weaker credit environment of the last two weeks, the bond has remained well bid and held on to gains it has enjoyed since its debut this summer.
“The bond yield has fallen from 10% to 7.9% and this is only with a limited number of investors from Europe involved in trading. Now, the demand of American investors will be added to that of the current investors”, said Giorgi Gagnidze.
You can find the latest research on Georgian Railway and the Georgian Economy, as well as a broad range of analytical tools on BG Capital’s website: http://www.bgcap.ge
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