Trade deficit down 7.8% y/y excluding one-offs in 5M16
In May 2016, exports decreased 11.6% y/y to US$ 172.3mn, imports were up 8.1% y/y to US$ 608.6mn (excluding one-offs), and the trade deficit was up 18.5% y/y to US$ 436.3mn, according to GeoStat. Reduced copper ore exports (-30.7% y/y) and car re-exports (-5.7% y/y) were the major commodities weighing on export growth in May 2016, while ferro-alloys (+59.7% y/y), nuts (+52.6% y/y), pharmaceuticals (+19.9% y/y), and gold (+29.0% y/y) posted increases.
Petroleum (-11.3% y/y), cars (+2.3% y/y), pharmaceuticals (+1.3% y/y, excluding one-offs), gases (-38.8% y/y), and telephones (+55.9% y/y) represented the top 5 imported commodities in May 2016.
In 5M16, the trade deficit is down 7.8% y/y to US$ 1.87bn, excluding one-offs, as imports fell 9.0% y/y to US$ 2.64bn and exports fell 11.7% y/y to US$ 780.4mn.
BGEO Group PLC announces the purchase of the remaining 75% stake in GGU
BGEO group PLC announces that JSC BGEO Investments, a wholly owned subsidiary of BGEO, has signed a Share Purchase Agreement, to acquire a 75% equity stake in Georgian Global Utilities Limited (GGU) on 23 June, 2016. As a result of this buy-out, the Group will own 100% of GGU. The transaction values GGU’s enterprise value at GEL 287.5mn.
EBRD issued its first public bond on the Georgian Stock Exchange
The European Bank for Reconstruction and Development (EBRD) issued its first public bond on the Georgian Stock Exchange in the amount of GEL 107mn on 17 June, 2016. The five-year issuance has a floating rate coupon linked to the three-month Certificate of Deposit (CD) issued by the National Bank of Georgia, with the initial three-month coupon set at 6.45%, following the NBG’s CD auction. This is the EBRD’s third successful bond issuance in Georgian lari managed by JSC Galt & Taggart.
