Investors from European countries have purchased 87.2% of an issue Eurobonds worth $250 million placed by Georgian Railways on the international financial market in mid July 2010, Georgia Online reports.
According to the Georgian government, 40.4% of the release was purchased by investors from UK, 20.9% - Switzerland, 25.9% - by other European countries, 6.5% - by Georgia, 6.1% - by off-shores, 0.2% - by Asian countries.
Most of the bonds were purchased by investment organizations (59.4%), banks (27.1%), hedge-funds (8%) and private investors (5.5%). The placement of the bonds was organized by the Bank of America Merrill Lynch and J.P. Morgan. It was carried out according to rule Reg S..The international rating agency Standard & Poor’s rated the bonds as ‘B+’, forecasting stability. Georgia plans to spend $550 million on modernizing railroad infrastructure. The Georgian government has 100% ownership of the ‘Georgian Railways’, which is part of the corridor ‘East-West’. The Georgian railroad is 1,324 km long with 45 tunnels, and 1,714 bridges and ferries between Russia and Ukraine.
