EBRD issues first bonds in Georgian currency

TBILISI, March 17 (Reuters) - The European Bank for Reconstruction and Development (EBRD) has issued its first-ever bond in Georgia's national currency, the lari, in a move to develop the local capital market, the Bank's regional office head said.

Bruno Balvanera, the EBRD's head for Caucasus, Moldova and Belarus, told a news conference on Monday that the two-year bonds worth 50 million lari ($29 million) were placed on Thursday.

"This is a very significant step for the Georgian local capital market," Balvanera said. "It brings a new instrument for investors and allows the EBRD to diversify its source of lari and to continue lending to companies in need of long-term financing in local currency."

JSC BG Capital, the wholly owned brokerage subsidiary of Bank of Georgia and TBC Bank acted as lead-managers and underwriters of the issue.

The EBRD issued its first-ever bond in neighbouring Armenia's national currency, the dram, last month.

One-year bonds worth 2 billion drams ($5 million) were placed via an auction on the NASDAQ OMX Armenia Exchange in the capital Yerevan.