The Capital Market Support Program

Brief description of the program:

The Capital Market Support Program includes Co-financing Component which contains the co-financing of the following two types of expenses related to the issuance of bonds:

Who can participate in the program:

Beneficiaries can participate in the program:

Enterprises, whose annual turnover does not exceed GEL 200 million;

For additional criteria, please refer to the Decree of the Government of Georgia provided in the attached files.

The main conditions of the program:

• Within the framework of the program, co- financing of the costs related to the placement of debt securities will be carried out only for placements that are public offering;
• Beneficiary is entitled to place securities   in national (GEL) and foreign (USD/EUR/GBP) currencies within the framework of the program;
• Within the framework of the program, co-financing of costs related to the placement within the preliminary prospectus submitted to the National Bank of Georgia before the beneficiary's inclusion in the program will not be implemented;
• Within the framework of the program for each Prospectus, It is allowed to submit only one OP for emission in each currency;
• The Brokerage Company must submit a prospectus approved by the National Bank of Georgia within 6 months from the beneficiary's inclusion in the program;
• For the co-financing of the cost(s) of this program, the Brokerage Company and/or the Beneficiary, must apply to the Agency within 18 months after the Beneficiary's inclusion in the program, in accordance with the established rule.

Prohibited activities and emission purpose within the program.

Please see the attached file (Annex)

Documentation to be provided within the program:

To participate in the program, the interested company must submit the application form to the Agency “Enterprise Georgia” at the following email address

cms@enterprise.gov.ge

Attached files:

The Decree of the Government of Georgia
 

Application form for participation in the program:

Application form

The program consists of two components:

1) The cost of obtaining a credit rating paid/payable to the rating company, the maximum amount of which is 100,000 GEL. When calculating the co-financing  volume, the  total  income accumulated during the previous economic year of the beneficiary shall be taken into account:

• 80% of expenses will be reimbursed in case  of income up to GEL 20 mln;70% of expenses will be reimbursed in case  of income from GEL  20 mln to GEL 40 mln;
• 60% of expenses will be reimbursed in case  of income from GEL  40 mln to GEL 60 mln;
• 40% of expenses will be reimbursed in case  of income from GEL  60 mln to GEL 200 mln;

2) Service   fee   (commission)   payable   by   the beneficiary to the brokerage company - the maximum amount of which is GEL 200 000. When calculating the co-financing  volume, the  total  income accumulated during the previous economic year of the beneficiary shall be taken into account:

For one Beneficiary, within the framework of more than one OPs, the maximum amount of co-financing within the program in  total  is  limited  to 1 million GEL.