The European Bank for Reconstruction and Development (EBRD) is investing up to GEL 10 million (€3.2 million) in the first-ever local currency bond issuance by Nova Group, a leading Georgian producer and retailer of construction and home improvement materials.
The total bond issuance, valued at GEL 50 million (€16 million), will be listed on the Georgian Stock Exchange and is expected to have a tenor of up to five years. The funds raised will be used to support capital expenditure, cover working capital requirements, and refinance existing loans. This transaction marks an important milestone for Nova Group and represents a significant step forward in the development of Georgia’s domestic capital markets.
Founded in 2006 as a roofing materials producer, Nova Group has grown into one of Georgia’s top manufacturers and retailers of construction materials. The EBRD’s investment will not only provide financing but will also assist Nova in implementing a corporate governance action plan. This plan includes measures to strengthen board operations, internal controls, and ethical standards, reinforcing Nova’s commitment to best practices.
This investment aligns with the EBRD’s strategic goals of deepening Georgia’s local capital markets, diversifying funding sources for companies, and enhancing financial resilience. By supporting Nova’s debut bond issuance, the EBRD is helping to introduce longer-tenor financial instruments to the market, increase liquidity, and establish a benchmark for future issuers. The public listing of the bonds will also promote transparency and higher governance standards through disclosure requirements.
The EBRD has been a leading institutional investor in Georgia, with a strong focus on fostering sustainable private-sector growth, improving access to finance, and promoting good governance. To date, the Bank has invested over €5.7 billion across 316 projects in Georgia, spanning the financial, corporate, infrastructure, and energy sectors, with 84 per cent of investments directed toward the private sector.
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