Fitch rates Georgian Railways bond BB-

Fitch Ratings said it gave Georgian Railways JSC’s dollar-denominated planned green eurobond an expected BB- rating.

The bond rating is equalized with Georgian Railways’ issuer rating as it will be a direct, unconditional senior unsecured obligation of the company, which will rank equally with all its other unsecured and unsubordinated obligations, the agency said.

The proceeds will be primarily used to refinance the $500 million of notes due 2022 through a tender offer structured with exit consent, financing of the company's infrastructure projects. The railway plans to fund any additional amounts required in respect of the tender offer and redemption of the 2022 notes from its internal cash flows.

“The assignment of final instrument rating is contingent on the successful placement of eurobond and completion of tender offer with exit consent for its existing $500 million 2022 notes,” Fitch said in a press release.

The company positions the bond as eligible for green financing as an amount equal to the net proceeds will be used to finance or refinance one or more eligible projects in accordance with the company's green bond framework.

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