The FINANCIAL -- PASHA Bank issued term loan facilities to Georgian Water & Power and Rustavi Water Company of GEL 12.5 million and GEL 10 million respectively. Combined exposure of the Bank to the borrower’s parent company, Georgian Global Utilities, amounts to GEL 22.5 million.
The borrowers are regulated water utilities serving Tbilisi and its environs and the city of Rustavi. They regularly carry out water supply and sewage networks rehabilitation works, replacing old underground facilities with new more efficient systems. Loans in foreign currency taken out by borrowers at the earlier date that are now being refinanced by GEL denominated facilities extended by PASHA Bank will contribute to the successful implementation of these projects.
“We are very glad to have started partnership with GWP & Rustavi Water. This transaction once again shows that PASHA Bank, being focused on serving large and medium enterprises, has both institutional capability as well as appetite to take on transaction of such large a scale. In a light of the current market climate, the fact that these facilities were issued in GEL deserves a special mention too,” commented the CEO of PASHA Bank, Shahin Mammadov.
“Georgian Water & Power’s strategy calls for the gradual reduction of its foreign currency exposures and this deal is a large step in that direction. We are glad that PASHA Bank agreed to provide us with medium term GEL funding at a fixed rate. I would like to hereby express our satisfaction regarding the cooperation with PASHA Bank. The process of structuring the deal was completed promptly and in an efficient manner, which is especially important considering the size of the deal,” said CFO of Georgian Water and Power, George Vakhtangishvili.
“Recent GEL/USD exchange rate volatility sparked tangible increase of interest in local currency funding. We are happy to be able to provide such a key player - with the mutually beneficial financing terms,” added Commercial Director of PASHA Bank, Goga Japaridze.
Georgian Water and Power (GWP) is a leading water utility in Georgia. It ensures stable supply of drinking water to Tbilisi. GWP also provides wastewater services and generates electricity. Power is generated by Zhinvali Hydro and Tetrikhevi Hydro plants. Biggest share of the electricity generated is used for the Company’s own needs.