• NAME OF RESEARCH

    Georgian Railway - Keep the wheels rolling

  • NAME OF AUTHOR

    Bank of Georgia Research

  • CATEGORY

    Transportation

  • YEAR

    2012-09-10

  • Download PDF

Fully state-owned Georgian Railway (GR) recently placed US$ 500mn in Eurobonds, the country’s first EMBI-eligible benchmark corporate bond, which helped broaden GR’s investor base and increase liquidity. The nature of GR’s operations is dictated – mostly to the company’s benefit – by Georgia’s geographical position as a key transit corridor linking oil- and commodity-rich Central Asia to the powerful European market. Operationally, the company is marked by impressive profitability thanks to stable revenue streams and subdued cost growth, while its debt servicing ability is solid. Georgian debt issuers are also benefiting from active investor interest due to the country’s prospects for continued economic growth and its low debt profile.