JSC “MFO Euro Credit” starts issuing inaugural debt securities (bonds) on December 1, 2023. The amount of the security equals 10 million US dollars, which will be given through a public offering.
The company aims to raise alternative funds through this transaction with the support of “Alpha Capital Advisor” Ltd, which represents a placement agent.
The legal advisor of the transaction is “Legal Firm BLC” Ltd and the calculation and payment agent is JSC “Pasha Bank Georgia.”
“Bond issuance is a strategic approach to raising the essential capital needed. With the help and support of Alpha Capital Advisor, placing these securities confirms investor confidence, which strengthens the financial stability of the company and its future growth perspectives.
Diversification of raised funds is essential from the risk management perspective, as the company will not depend solely on one source of raised funds. Financial stability will be maintained; optimization and flexibility of capital costs will be implemented from an operational perspective, which will play a significant role in the success and sustainability of the company.
This marks a significant leap forward for the micro-finance institution Euro Credit, setting its growth and development strategy into motion.
Issuing securities and developing capital market is a crucial stimulus for the country’s economy.”- said Michael Nonikashvili, CEO of JSC “MFO Euro Credit.”
“It is noteworthy that this debt security is the company’s first issue on the capital market of Georgia. JSC “MFO Euro Credit” is the 4th company representing the micro-finance sector, which will seek financing in the capital market through bonds. The commitment of “MFO Euro Credit” to secure funds for business growth is encouraged, which, from our perspective, will, in turn, contribute to the enhanced diversification of funding and stability in the micro-finance sector. We hope that the activity of investors will be high, which will help the company achieve its goal. We thank the management, executive board, and JSC “MFO Euro Credit” shareholders for their contribution to enhancing Georgia’s sector and capital market. Finally, this transaction represents the first public security transaction of “Alpha Capital Advisor” in the financial sector as an independent player in the capital market. As an independent player in the market, we hope to support the development of the capital market through many other interesting transactions and new issues on the market,” – said Irakli Elashvili, managing partner of “Alpha Capital Advisor” Ltd.
“MFO Euro Credit” has been operating in the Georgian market since 2011, with 11 branches across major cities. According to the company, there are some expansion plans for the near future. Euro Credit offers customers automobile and business credits.
The primary activity of “Alpha Capital Advisor” Ltd encompasses investment banking and consulting services related to the issue of securities, as well as providing various financial consulting to companies and investors in corporate finance. “Alpha Capital Advisor” aims to actively contribute to developing the capital market in Georgia, the South Caucasus, and the Central Asia region and support companies in diversifying funds and creating added value through mergers, acquisitions, and divestitures. S
The main parameters of the transaction are as follows:
| Issuing entity | JSC “MFO Euro Credit” (ID # 404919102) |
| Form of issue | Public offering |
| Listing | Security aims to be listed on the “Georgian Stock Exchange”. |
| Offered security | Unsubordinated and unsecured bond |
| Amount of the issued bond | 10,000,000 (ten million) US dollars |
| Minimum amount of the investment | 50,000 (fifty thousand) US dollars |
| Issue date of bonds | December 1, 2023 |
| Maturity, principal payment date | 4 years, bonds mature on December 1, 2027 |
| Annual coupon rate | 9,50% |
| Interest payment | Semi-annual |
| Redemption option | After 24 months – in full, at 102,5% of the nominal value of the bonds |
| Type of investors | Not limited |
| Legislation | Georgian legislation |
| International Securities Identification Number (ISIN) | GE 2700604558 |
