TBILISI, Georgia, April 25, 2023 - Silk Road Real Estate, a leading Georgian real estate management company, has today issued a US$ 20 million bond – the first of two tranches worth US$ 40 million. The bond offers a coupon of 9.00% p.a. (gross) with a maturity of 3 years.

On the back of this bond issue, Silk Road Real Estate will soon 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 with one structure in pursuit of the same goals. 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."

Mamuka Shurgaia, CEO of Silk Road Real Estate, said:

"It is a landmark moment for the company, and it sends a clear signal that both international and local investors recognize the huge growth potential that Georgia and leading companies like Silk Road Real Estate can offer.

"I would like to thank my team and everyone involved. Thank you for making this a reality, and now we look forward to putting the proceeds of this bond into action."

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
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 Silk Road Real Estate