Silknet raises $200 million in Eurobond issue
27 March, 2019
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”). The Notes were subscribed by investors from a wide range of geographies. The Notes are expected to be rated B1 by Moody’s and B+ by Fitch, in line with Silknet’s long-term issuer credit rating.

The Notes are expected to be listed on the Global Exchange Market of Euronext Dublin. J.P. Morgan, UBS and
TBC Capital are acting as the joint lead managers. Dentons UK and Middle East and Dentons Georgia are acting as the legal advisors to Silknet, while Latham & Watkins and BGI Legal are acting as the legal advisors to the joint lead managers.

George Ramishvili, Chairman of Silknet’s Supervisory Board and Founder of Silk Road Group, Silknet’s parent company, said:

“Today’s placement reflects the strength and the potential of Silknet, one of the only companies with a truly comprehensive communication and entertainment offer for consumers and businesses. Developing Georgia’s infrastructure through Silknet is an important part of Silk Road Group’s mission to establish Georgia as the bridge between East and West.”

David Mamulaishvili, Chief Executive Officer, Silknet, said:

“Investors taking advantage of this issuance will benefit from unrivalled exposure to Georgia, the former CIS’s most promising success story for its entrepreneurial business environment. Indeed, Georgia is ranked 6th in the World Bank’s most recent ‘Ease of Doing Business’ index. Silknet is one of Georgia's leading telecoms companies with a comprehensive offering and a truly national customer footprint”

Silknet benefits from brand recognition, customer loyalty and leverage as an integrated telecommunications provider. The company combines infrastructure, including mobile and fixed networks, and services including entertainment and broadcasting platforms, as well as exclusive content rights.

Notes for Editors

About Silknet


Silknet is the country’s largest fixed network provider, successfully expanding into mobile carrier service operations including 4.5G, offering businesses and households the full range of telecommunication services, such as fixed telephony, fixed broadband based on fibre technology, IPTV and mobile.

Silknet is rated B1/Stable by Moody’s and B+/Stable by Fitch Ratings.

Silknet has a broad subscriber base in Georgia:
• c. 1.77 million mobile customers
• c. 297,000 fixed line customers
• c. 278,000 fixed broadband customers
• c.228,000 pay TV customers
(Figures correct 31/12/2018)

Silknet is part of Silk Road Group, one of the Caucasus’s leading investment groups.


DISCLAIMER

NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

This communication is not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. JSC Silknet has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States. Notwithstanding the foregoing, prior to the expiration of a 40-day distribution compliance period (as defined under Regulation S under the U.S. Securities Act of 1933, as amended) commencing on the closing date, the securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, except pursuant to another exemption from the registration requirements of the U.S. Securities Act of 1933, as amended.

The offering to which this communication relates will be made on the basis that any offer of securities in any member state of the European Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State”) will be made pursuant to an exemption under the Prospectus Directive from the requirement to publish a prospectus for offers of securities.

In Relevant Member States, this communication is directed only at persons who are “qualified investors” within the meaning of article 2(1)(e) of the Prospectus Directive.

The expression Prospectus Directive means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression 2010 PD Amending Directive means Directive 2010/73/EU.

This communication is directed only at (i) persons who are located outside the United Kingdom, Australia, Canada or Japan, or (ii) persons who are located in the UK who either: (a) have professional experience in matters relating to investments falling within Article 19(1) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), or (b) are high net worth entities, or (c) are other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order, (all such persons together being referred to as “relevant persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

MIFID II professionals/ECPs-only/No PRIIPS KID – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the 2026 Notes are not available to retail in the EEA.

This communication is not an offer, or an invitation to make offers, to purchase, sell, exchange or transfer any securities in Georgia or to or for the benefit of any Georgian person or entity, unless and to the extent otherwise permitted under Georgian law, and must not be made publicly available in Georgia. The securities have not been and will not be registered in Georgia and are not intended for “placement”, “public circulation”, “offering” or “advertising” (each as defined in Georgian law) in Georgia except as permitted by Georgian law.

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