On 24 July, 2024, following the approval of the Preliminary Prospectus by the National Bank of Georgia, JSC Liberty Bank (the “Company”) began the issuance process of US$25,000,000 (twenty-five million) inaugural public subordinated debt securities (the “Bond”). The issuance of the security will be made through a public offering from 8 August 2024 and will target qualified investors. The aim of the transaction is to raise tier two capital for the bank.
The placement and payment and calculation agent of the aforementioned bond issuance is “Alpha Capital Advisory” LLC. The legal advisor of the transaction is “BLC Law Firm” LLC.
Main parameters of the transaction are as follows:
| Issuer | JSC Liberty Bank |
| Format | Public lister offer |
| Rank & security | Subordinated and Unsecured Bond |
| Size | 25,000,000 (twenty-five million) US dollars |
| Denomination / minimum investment volume | Denomination 1,000 (one thousand) US dollars. The investment volume is not less than 100,000 (one hundred thousand) GEL equivalent to US dollars |
| Expected bond issuance date | 8 August 2024 |
| Maturity | 7 years |
| Annual coupon rate & type | Fixed coupon rate to be determined at the time of the preliminary offer |
| Payment of interest | Semiannual |
| Type of investors | Qualified investors only |
| Legislation | Georgian Law |
“Liberty Bank continues to advance its institutional development, evolving into a complex and sophisticated financial institution. As we progress, the bank is poised to attract interested investors, offering them the opportunity to become integral to our success story.
The results of our core transformations in recent years are evident, as reflected in the bank’s profitability. We are confident that by issuing subordinated bonds, Liberty Bank will further solidify its position in the financial market, advancing with increased momentum and innovative products. On behalf of the management team and the supervisory board, I extend my gratitude to our agent, Alpha Capital Advisory, and the entire Liberty team for making this achievement possible. ” – Vato Babunashvili, the CFO and Deputy CEO of JSC Liberty Bank.
“It should be noted that this debt security is the first inaugural, public issuance of the company in the capital market of Georgia. JSC “Liberty Bank” is one of the first banks that will seek financing in the local capital market through public bond issuance. The aspiration of Liberty Bank to provide business growth financing through the capital market is welcomed, which in turn, we believe, will contribute to deepening further diversification of funding and capitalization in the banking sector – and in turn strengthening the sector.
We hope that in order for the company to achieve its goals, the activity of qualified investors will be high. I would like to thank the management, supervisory board and shareholders of JSC “Liberty Bank” for their contribution to the development of the sector and the capital markets of Georgia. Lastly, this transaction represents the third security transaction in the banking sector by Alpha Capital Advisory, as an independent player in the capital markets of Georgia. As an independent player in the market, we hope to contribute to the development of the capital markets through many more interesting and innovative transactions and introducing new issuers to the market.” – announced Irakli Elashvili, the managing partner of Alpha Capital Advisory LLC.
About JSC Liberty Bank: Liberty is one of top 3 commercial banks in the country, serving more than 1.7 million individuals and more than 50,000 small and medium-sized businesses. The bank’s assets amount to GEL 3 bln. With more than 4,500 employees Liberty is represented accross the country with the widest network – 370 service centers, 632 ATMs, self-service terminals in all regions and municipalities of Georgia. In addition to the unique infrastructure, modern digital and remote services are available for both individuals and businesses. For media relations PR@lb.ge.
About Alpha Capital Advisor LLC: The main activities of the company include investment banking and consulting services regarding the placement of securities and providing various financial advice to companies and investors in the direction of corporate finance. On November 9, 2021, the company obtained the license for the activities defined by clauses “a”-“d” of Article 23 of the Law on the “Securities Market” from the “National Bank of Georgia” (“NBG”), and since June 2024, the company has been operating with a full brokerage license of the NBG. The aim of “Alpha Capital Advisory” is to actively contribute to the development of the capital markets of Georgia, the South Caucasus and Central Asia, to support companies in diversifying financing and creating additional value through mergers, acquisitions, or divestitures. The company offers its clients unbiased and high-quality investment banking expertise, innovative solutions to problems and an approach aimed at one goal – to achieve the desired strategic result for the clients of “Alpha Capital Advisory”. Co-founders and managing partners of the company are Irakli Elashvili and Levan Tsutsunava. S
