Silk Road Real Estate, a prominent real estate management company in Georgia, has announced the issuance of a US$20 million bond as the first tranche of a two-part issuance worth US$40 million.
The three-year maturity bond carries a coupon of 9.00% p.a. (gross). The company is expected to issue the second tranche later this year, and with the bond issuance, Silk Road Real Estate will become a publicly listed company on the Georgian Stock Exchange.
The first tranche of US$ 20 million offers a coupon of 9.00% p.a. (gross) with a maturity of 3 years. The second US$ 20 million tranche is expected to be issued later this year.
Silk Road Real Estate will now become a publicly listed company on the Georgian Stock Exchange, which is a testament to the company’s continued success in recent years. The bond issue was made possible with the support of TBC Capital, Galt & Taggart and Silk Bank.
George Ramishvili, Chairman and Founder, Silk Road Group, said:
“This successful bond issue has only been possible as a result of the hard work undertaken by colleagues across SILK ROAD Real Estate, working together as one highly effective and motivated team.
“The company has one structure, which includes real estate, development, hospitality and entertainment, and colleagues across these divisions work in pursuit of the same goals with the backing of a reputable, international and independent board. This leads to tangible and impressive results.
“We work with globally renowned, star architects and designers, to give all our buildings an innovative and modern feel in keeping with international standards. It is what makes them unique and on the back of this bond issue, we look forward to investing more in Georgia.”
Silk Road Real Estate has two core divisions, Silk Development, which manages the development of new real estate projects, and Silk Hospitality, which is the operating company for most of the developed properties of the company, as well as for third-party properties.
Together, the two divisions have developed and now manage important assets across Georgia, including:
- Radisson Blu branded hotels located in Tbilisi and Batumi
- A Radisson Collection branded hotel located in the historic Tsinandali Estate and the Park Hotel Tsinandali
- Casinos Iveria in Tbilisi and Batumi
- Republic, a collection of high-end Georgian restaurants and eateries
- Event facilities and clubs
The company is currently developing several large-scale projects in different regions of Georgia, including another 5-star hotel, The Telegraph Hotel, in the center of Tbilisi. The combined assets owned by the company are valued above 900 million GEL (US$ 360 million).
Silk Road Real Estate is part of the Silk Road Group, which has invested around US$ 1 billion in the Georgian economy since 2005. The Silk Road Group investments also include Silknet, Silk Bank, Bakhvi Hydro Power and others.
The bond issues were undertaken as part of Silk Road Group’s financing strategy to secure new sources of financing for upcoming investments. The proceeds of the bond issue will go towards:
- Refinancing existing bank debt
- Buying-out the Georgian Partnership Fund, which had provided mezzanine financing for the development of Tsinandali Radisson Collection
Source : Investor Observer