Austrian bank became a shareholder of Bank of Georgia


Austrian bank became a shareholder of “Bank of Georgia”. As the president of “Bank of Georgia” – Lado Gurgenidze said at the presentation held on Tuesday, “Bank Austria credit alt” bought 212 000 worth of ordinary shares, which makes up 9,9% of the bank’s joint stock.

“The Austrian bank issued warrants giving the right to buy “Bank of Georgia’s” shares. The trade of the warrants is possible at Vienna Stock Exchange and non-exchange markets. We are very glad that the Austrian bank, for the first time in Georgia and in the whole of the Caucasus, has completed a transaction of structural financing. The warrants will make the shares of Bank of Georgia more available for institutional investors”, – Gurgenidze said.
According to him, over the past several months “Bank of Georgia” has successfully been attracting institutional investors, but it has no opportunity to access considerable segments of institutional investments. “In particular those investment funds that cannot trade exotic securities without participation of a universally recognized custodian”, – Gurgenidze said.
In case of obtaining of the Georgian National Bank’s consent the Austrian bank intends to buy additional shares of “Bank of Georgia” with the purpose of increasing of the number of issued warrants. “This is a very important achievement which moves Georgia’s quickly developing economy one more step near international market of capitals”, – Gurgenidze noted.
“Bank of Georgia” sold 500 thousand of newly emitted shares to “East Capital Holding AB”, the price of one share is 7,20 GEL. “We are glad that “East Capital” is showing interest toward “Bank of Georgia’s” shares, and we expect intensification of cooperation with it in the nearest future”, – Gurgenidze said.
The warrant for the right of buying, or derivative security, gives its owner the right to buy a share at the agreed price on a fixed day or till a fixed date.