Issuance of bonds by healthcare services business

  London, 17 July 2017

GHG announces issuance of GEL 90 million bonds due 2022 by its healthcare services business

Georgia Healthcare Group PLC ("GHG" or the "Group"), announces that its healthcare services business, JSC Evex Medical Corporation ("Evex"), has completed the private placement of GEL 90 million local bonds due 2022 (the "Bonds"). JSC Galt & Taggart acted as a placement agent for the Bonds. The Bonds were priced at an issue price 100% of their principal amount on 12 July 2017. They carry a floating coupon rate of 350 basis points premium over the National Bank of Georgia Monetary Policy (refinancing) Rate. The proceeds will be used to refinance borrowings from local commercial banks, which are a relatively more expensive source of funding, and also to fund planned ongoing capital expenditures.

"I am very pleased that Evex has completed another landmark transaction demonstrating our superior access to capital. I am glad that the transaction was met with considerable interest from investors, and we completed the largest private placement of any corporate (other than commercial banks) in local currency ever done in Georgia. The issuance helps us to further build a longer-term, less expensive funding profile and contributes to the successful implementation of our strategy" commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.

Name of authorised official of issuer responsible for making notification:

Ekaterina Shavgulidze, Head of Investor Relations

About Georgia Healthcare Group PLC

Georgia Healthcare Group PLC is a UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian healthcare services market. GHG's leadership position is underpinned by offering the most comprehensive range of inpatient and outpatient services targeting the mass market segment through its vertically integrated network of 35 hospitals and ten ambulatory clusters (consisting of 13 district ambulatory clinics and 28 express ambulatory clinics), as at 31 March 2017. GHG is the single largest market participant, accounting for 23.4% of total hospital bed capacity in the country, as of 31 March 2017. From January 2017, GHG become the largest pharmaceuticals retailer and wholesaler in Georgia, with approximately 29% market share based on 31 December 2015 revenue figures. GHG is also the largest provider of medical insurance in Georgia with a 35.3% market share based on net insurance premiums earned and approximately 135,000 insurance customers as at 31 March 2017. GHG employed a total of c.14,600 people as at 31 March 2017, including c.3,300 physicians.

For further information, please visit www.ghg.com.ge or contact: 

This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities