The EBRD and EU implement the CMS Programme in Georgia
The Capital Markets Support (CMS) Programme was successfully implemented in Georgia between 2021 and 2023, with the aim of supporting issuers to access capital markets and contribute to local financial development. This initiative, funded by the European Union (EU), was implemented by the Capital Markets Development team of the European Bank for Reconstruction and Development (EBRD). The project’s advisory work was carried out in partnership with Galt & Taggart and BDO Georgia.
By supporting companies through the issuance process and co-financing issuance-related costs, the programme was able to double the outstanding volume in the market and almost reach the volume of total issuance during the period 2011-2021.
The programme provided a comprehensive capacity building program to market participants and, after a rigorous selection process, grants were awarded to seven companies. These companies are:
- Georgian Renewable Power Operations
- Crystal
- MBC
- Rico Group
- TBC Leasing
- Tegeta Holding
- Energy Development Georgia.
In total, 21 applicants from 12 sectors registered to participate in the co-financing initiative, 15 of which were first-time issuers. This is especially noteworthy, considering that in 2021 there were only 12 existing corporate bond issuers in Georgia. Of the 21 registered candidates, 11 successfully placed securities on the market with a total value of 1.1 billion GEL, including the 7 companies selected for grant co-financing.
This success also led to the emergence of new players in the Georgian market that are committed to Environmental, Social and Corporate Governance (ESG) principles. As a result, the program introduced five thematic securities to the Georgian market, including three green bonds, one gender bond and one sustainability-related bond. These were the first sustainable securities ever issued on the Georgian capital market.
Education played a key role in the success of the programme. During the programme, various webinars and master classes were held for over 100 participants, including representatives of the National Bank of Georgia (NBG), relevant ministries, investment banks and commercial banks. In addition, issuers selected to receive grant-co financing benefited from a tailored capacity building offer.
The Capital Market Support Programme has played a key role in developing the Georgian capital market, stimulating economic growth and promoting sustainable investments. It has created opportunities for companies to access new sources of funding and encouraged the adoption of ESG principles in the market. The success of the programme is evidence of the commitment of all stakeholders to strengthening the financial ecosystem in Georgia.
Watch the video: Capital Market Support Programme Results