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TBC Capital’s report on Fixed Income Securities

By Mariam Chanishvili
Monday, June 18
TBC Capital presented the research report on “Fixed Income Securities in Georgia” during the business forum, which described the Bond Market in Georgia and discussed its future development trends.

Georgia’s bond market has grown rapidly over the last 7 years, with the total stock of bonds growing from GEL 1,898m in 2010 to GEL 8,104m in 2017.

Publicly issued bonds outstanding was only 232m GEL at YE 2017. Market capitalization of corporate bond market in Georgia is 0.6% of GDP, much less than that of selected peers.

The report discussed the supporting factors for the bond market development, including tax breaks, expected increase of corporate governance and transparency and improved regulations on the market.

TBC Capital’s Managing Director, Irakli Elashvili noted that corporate bond is a relatively new product on Georgian financial market.

“There are various key factors, including tax breaks and National Bank of Georgia’s pledge rules, which play the pivotal role in supporting the corporate fixed income market development in Georgia. Corporate bond market is developing and we believe that more local corporations will consider financing their business activities via issuing the corporate bonds. The increased demand from the corporations for bond financing is already prominent. Additionally, we believe that pension reform will play a significant role in the market development, creating the additional long-term GEL supply on the market,” said Elashvili.

The CEO of TBC Bank Vakhtang Butskhrikidze discussed that the main source of finance for companies is debt in Georgia. He expressed hope that the source of finance will become more diverse and include bonds as well.

Business Forum organized by TBC Capital was attended by representatives of public and private sectors. Panel Discussion on Georgian Fixed Income Market – Challenges & Opportunities also took place. TBC Capital, National Bank of Georgia, Georgian Stock Exchange, JSC Silknet, BLC Law Office, ISET and Scope Rating participated in the panel.

The report is published on

TBC Capital is an advisory arm of TBC Bank offering Corporate Advisory, Research and Brokerage solutions in Georgia. TBC Capital is a member of Georgian Stock Exchange (GSE) – sole stock exchange in Georgia.

TBC Research represents the joint project of TBC Bank Economic Team and TBC Capital created to provide analysis of developments in the economy of Georgia in various sectors as well as regional environment.