One of the key players of the microfinance sector JSC “MFO Euro Credit” issued its first bond in the amount of 10 million US dollars on December 1, 2023.

On November 28, 2023, after the approval of the final prospectus by the "National Bank of Georgia", JSC “MFO Euro Credit” started issuing inaugural debt security (bond) in the amount of 10 million US dollars. The security will be issued through a public offering on December 1, 2023, and will target retail, and corporate investors. The goal of the transaction is to raise alternative funds.

The placement agent is “Alpha Capital Advisory” LLC, the legal advisor of the transaction is “Legal Firm BLC” LLC, and the calculation and payment agent is JSC "Pasha Bank Georgia".

„We started considering issuing bonds about a year ago. Raising alternative funds is extremely important for securing necessary capital and from risk management perspective. Thus, entire team of Euro Credit was actively involved in this process. We would like to extend our special gratitude to “Alpha Capital Advisor”, which provided us with support from the first day and managed the process smoothly without delays. The fact that MFO Euro Credit issues securities, serves as a confirmation of the investor confidence and we are certain that the first round will be closed soon.

Euro Credit is continuously oriented on its development, it represents a modern company; thus, both retail and corporate investors or interested parties will systematically hear interesting news from us” – said Irakli Tsurtsumia, the Deputy CEO of MFO Euro Credit.

"It is noteworthy that this debt security is the company's inaugural issuance on the capital market of Georgia. JSC "MFO Euro Credit" is the 4th company representing the micro-finance sector, which will seek bond financing via the capital markets. The commitment of "MFO Euro Credit" to secure bond funds for business growth is admirable, 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 in achieving its goal. We extend our gratitude to the management, executive board, and shareholders of JSC "MFO Euro Credit", for their contribution in development of the sector and the capital markets of Georgia. Finally, this transaction represents the first public security transaction of "Alpha Capital Advisory" in the financial sector. Being an independent player in the market, we hope that we will support further development of Georgia’s capital markets through many other interesting transactions and new bond issues " - said Irakli Elashvili, managing partner of "Alpha Capital Advisory" LLC.

"MFO Euro Credit" has been operating on the Georgian market since 2011 and it has 11 branches across major cities and according to the company, there are some expansion plans for the nearest future. Euro Credit offers customers automobile and business credits.

The major activity of "Alpha Capital Advisory" LLC encompasses investment banking and consulting services related to the issuance of securities, as well as providing various financial advice to companies and investors in the field of corporate finance. The goal of "Alpha Capital Advisory" is to actively contribute to the development of the capital market in Georgia, the South Caucasus and Central Asia region, and support companies in diversifying funds and creating added value through mergers, acquisitions, and divestitures.

Individuals interested in purchasing bonds can contact "Alpha Capital Advisory" by sending an email to info@alphacapitaladvisory.com

The main parameters of the transaction are as follows:

Issuer: JSC "MFO Euro Credit" (ID # 404919102)

Issue Type: Public offering

Listing Venue: Security will be listed on the "Georgian Stock Exchange".

Offered Security: Unsubordinated and unsecured bond

Amount: 10,000,000 (ten million) US dollars

Minimum Investment Amount: 50,000 (fifty thousand) US dollars

Issue Date: December 1, 2023

Maturity: December 1, 2027

Annual Coupon Rate: 9.50%

Interest Payment: Semi-annual

Call Option: After 24 months - in full, at 102.5% of the nominal value of the bonds

Type of Investors: Not limited

Legislation: Georgian legislation

ISIN: GE 2700604558

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