BGEO Bonds (IFC-38541)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Georgia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 14, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
JSC BGEO GROUP
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 350.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 29, 2018

Disclosed by Bank Jul 28, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

This project invests in a tradable Eurobond issued by Joint Stock Company BGEO Group. This issuance is New Notes offered by the company in the amount of US$350 million, with a 7-year maturity. IFC is playing the role of anchor investor in this issuance.

The proceeds from the issuance of these New Notes will be used to provide funding to the JSC Bank of Georgia to redeem its outstanding notes. The New Notes are listed on the Irish Stock Exchange under 144A/Reg S and were offered to qualified institutional buyers in the United States and to non-US persons elsewhere.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Joint Stock Company BGEO Group is a Georgia-based wholly owned subsidiary of BGEO Group PLC Formerly Bank of Georgia Holdings PLC, incorporated in the United Kingdom. The banking business consists of corporate investment banking, retail banking, as well as advisory and brokerage, insurance and leasing services. The Group primarily conducts its banking business through BOG and banking operations in Belarus through Belarusky Narodny Bank, both existing IFC clients.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

JSC BGEO is one of the largest banking and industrial groups in Georgia which successfully explores investment opportunities in (among others) the financial, healthcare and real sectors in the country. JSC BGEO is a fully owned subsidiary of the UK incorporated BGEO Group PLC. BGEO Group PLC is listed on the premium segment of the London Stock Exchange (LSE) and has a current market capitalization of approximately U$1.4 billion. Its top 10 institutional shareholders which, in aggregate, own about 40% of the Group’s shares include Schroeder Investment Management PLC, Harding Loevner LP and Westwood International Advisors Inc.

JSC BGEO was established in August 2015 as a result of a corporate reorganization of the Group to address the requirements of the National Bank of Georgia (NBG) to regulate banks in the country on a standalone basis and limit investments in non-banking subsidiaries by locally regulated banking entities. JSC BGEO subsidiaries are grouped into banking and investment businesses, which represent an optimal fit to manage JSC BGEO’s operations as a Georgia-focused banking group with an investment arm. There are three principal subsidiaries under JSC BGEO: JSC BGEO Investments, JSC BG Financial and BOG; where BOG constitutes the majority of the Group’s core business.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contact information provided at the time of disclosure.

ACCOUNTABILITY MECHANISM OF IFC


The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works