12th Jun 2014 09:25
LONDON (Alliance News) - Bank of Georgia Holdings PLC Thursday said its real estate subsidiary JSC m2 Real Estate has completed construction of its largest project to date, helping boost its mortgage lending, while another real estate unit, JSC m2, has successfully closed a USD10 million one-year bond placement.
In a statement, the bank said JSC m2 Real Estate's completed project is 63,247 square metres of real estate with 522 residential apartments, of which 97% have been sold. More than a third of the sales were financed using GEL22 million worth of JSC Bank of Georgia mortgages, boosting its mortgage lending business. The apartments were completed four months ahead of schedule, it added.
Meanwhile, the JSC m2 bond was issued at par and carries a coupon rate of 8.42% payable upon maturity. This is the second bond offering by m2 this month, after it issued a one-year USD5 million bond with a 9.5% coupon rate at the start of June.
JSC m2 is managed by JSC m2 Real Estate.
"We are delighted to have completed our largest project to date and to have issued our second bond in a month, which like the previous bond issuance was met with considerable interest driving down the yield from 9.5% to 8.42%. We now have two completed projects in our portfolio, two more projects currently under construction and we are actively working towards launching more projects in the nearest future," Irakli Burdiladze, chairman of JSC m2 Real Estate, said in a statement.
Bank of Georgia Holdings shares were up 0.7% at 2,386 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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