Georgian Finance Minister: strong investor demand for Georgian securities reflects confidence in economy

Georgian Finance Minister Lasha Khutsishvili on Wednesday said that strong investor demand for securities issued on both domestic and international markets demonstrated confidence not only in the country’s current fiscal stability but also in its long-term economic prospects.

Presenting the 2027 state budget draft to Parliament, Khutsishvili said Georgia’s stable economic growth, sustainable debt levels, fiscal consolidation and improved reserve adequacy had strengthened international investors’ confidence in the country. He noted that this was reflected in the successful issuance of $500 million in Eurobonds in January this year.

According to the Minister, issuing bonds on international markets serves two purposes: it reflects the level of risk associated with a country and provides an indication of international investors’ interest in and confidence in its economy.

“Significant progress has been achieved on both fronts. First, the country’s risk premium has declined by more than 50 basis points, representing an improvement of over 25%. At the same time, we witnessed record-high demand for Georgia’s Eurobonds. In total, demand from more than 100 international investors was 5.5 times greater than the amount offered on the market, meaning that international investors were prepared to invest up to $2.8 billion in Georgian securities”, he said.

“Furthermore, in terms of yield, this was the most favourable result achieved over the past four years by a sovereign issuer without an investment-grade credit rating anywhere in the world”, Khutsishvili added.

The Finance Minister also highlighted the issuance of treasury securities in May this year, when the Ministry of Finance used the syndication method for the first time, raising ₾400 million ($153,882,560).

He described the move as an important step forward in the development of Georgia’s domestic capital market.

According to Khutsishvili, investor demand for the treasury securities reached ₾1.8 billion ($692,471,520), 4.5 times the amount issued.