According to the information of the Ministry of Economy, one of the largest international chemical production companies – Indorama Corporation – entered Georgia.

As mentioned in the information released by the Ministry, the Singaporean company has been studying the investment climate and opportunities of Georgia for years, in which the investment team of the “Enterprise in Georgia” agency was actively involved.

“With the active involvement of the agency of the Ministry of Economy and Sustainable Development, “Enterprise in Georgia”, one of the largest international chemical production companies, Indorama Corporation, entered Georgia.

The Singaporean company, which has more than 160 enterprises in 38 countries of the world and employs more than 45,000 people, acquired the Rustavi nitrogen fertilizers enterprise.

The Singaporean company has been studying the investment climate and opportunities of Georgia for years, in which the investment team of the “Enterprise in Georgia” agency was actively involved,” the information states.

According to Mikheil Khidureli, director of the agency “Enterprise in Georgia” of the Ministry of Economy and Sustainable Development, with the introduction of the largest Singaporean corporation, the investment potential of Georgia has been demonstrated with another large-scale project. According to him, by introducing one of the leaders of world-scale chemical production to the Georgian market, the agency exceeded all the indicators outlined in the strategy.

“With the support of the Georgian government, this project was completed and the said investment will be one of the largest in the country. In the coming years, the corporation plans to invest significant financial resources in the direction of modernization, development, and expansion of production of the enterprise”, said Mikheil Khidureli.

Source: GEORGIAN PUBLIC BROADCASTER

Translated By I&D Consulting.

Starlink belonging to the richest man on the planet, Elon Musk, is preparing for operations in Georgia.

On June 29, Starlink Holdings Netherlands established a subsidiary “Starlink Georgia” in Georgia and applied to the Communications Commission for authorization. The regulator plans to review the documentation submitted by the company on July 14.

Starlink provides high-speed, low-latency broadband Internet access worldwide, including in areas where Internet access is expensive, unreliable, poor quality, or completely unavailable. SpaceX has launched more than 2,700 Starlink low-orbit (LEO) satellites to date.

In the context of Georgia, Starlink is especially important and interesting in mountainous regions and in settlements without broadband internet coverage.

No large infrastructure is required to receive Starlink Internet. Only a power source and receiving device are required. As a result, it is possible to use the Internet anywhere in the world.

“SpaceX is currently working on the study of interesting niches in the Georgian market and is preparing for the commercial launch of Starlink operations in Georgia. I think this fact is a very important event for the country and the telecom sector, since after the introduction of Starlink, satellite Internet will become available in Georgia, and this will open a window to the innovative digital future.” for the development of the services market”, said Ekaterine Imadedze, a member of the Communications Commission, on June 21, after a meeting with the representative of SpaceX.

Source: Business Media Georgia, TV Imedi

The British company is leaving Russia – part of the team is already in Tbilisi

The British electric car manufacturing company Arrival, which was founded by the Russian billionaire, the former head of Yota and the former deputy minister of communications of Russia, Denis Sverdlov, will stop operating in Russia. The Financial Times reports on this. The publication writes based on the vice-president of Arrival, Tom Elvidge, that the company does not plan business activities in Russia in the future. According to him, part of the team of developers has already been transferred to Tbilisi.

He says that the company started the process of leaving Russia in the first days of the war in Ukraine. Elvidge said the company has a team in Russia working on software for electric cars. According to his own words, Sverdlov opposed Russia’s invasion of Ukraine from the beginning.

“Dennis has come out publicly and made it clear that he and Arrival are opposed to what’s happening in Ukraine,” Elvidge said when asked about the possibility of sanctions against the company. According to him, most of the Russian team of the British company is already in Georgia and an office has been opened for them in Tbilisi. According to Arrival’s vice president, the process of completing operations in Russia will continue for several more months.

I will tell you that Arrival was founded in 2015 by Denis Sverdlov, the former Deputy Minister of Communications of Russia and the former head of Yota. Among the company’s investors are Hyundai, Kia, and the BlackRock fund. Among its clients is the largest shipping and delivery company United Parcel Service, which signed a contract with the manufacturer for the purchase of 10,000 electric cars. In 2021, Arrival was estimated at 13.6 billion dollars. As of December 28 of the same year, Arrival’s capitalization on the Nasdaq was $5.1 billion, and Sverdlov’s fortune was estimated by Forbes at $3.7 billion.

Source: Commersant.ge

The National Bank of Georgia (NBG) is considering launching a publicly available Central Bank Digital Currency (CBDC) to leverage new technologies to enhance efficiencies of the domestic payment system and financial inclusion. The CBDC is a direct liability of the central bank that can be used to settle payments, or as a store of value and will have legal tender status. In this journey, NBG is inviting technology firms, fintech companies, and interested financial institutions to join efforts to explore the frontiers of financial technology and solve technological, regulatory, and financial issues facing CBDC adoption through a public-private-partnership (PPP).

NBG has the mandate to maintain price and financial stability. The key instrument through which these policies are maintained is central bank money – the Georgian Lari (GEL). The rise of digital technologies underscores the necessity to update central bank money – by creating a digital version of the GEL – to better serve the digital economy and increase public policy efficiency. 

CBDC holds the promise to unlock the tremendous value of innovative business models for the benefit of society. The introduction of CBDC could increase financial intermediation efficiency, help introduce new financial technologies, facilitate financial inclusion, and reach previously unbanked populations. It could also increase monetary policy efficiency by improving monetary policy’s monetary transmission mechanism and welfare effects for the society.

NBG shares the principles outlined in BIS (2020) and aims to develop CBDC technology based on the following features:

Due to the completely new and potentially disruptive technology of CBDC, it is essential to ensure sound risk management during the development process. There are many risks that theoretical literature attributes to CBDC. There may be even more new and unforeseen risks, which will only be found in a live and controlled environment. NBG aims to use its Open Regulatory Framework tools, to facilitate CBDC development. For example, NBG’s RegLab facilities and its principles can be utilized to insure a regulatory sandbox approach for CBDC developers. Rapid live testing in a controlled environment should enable the agile development of CBDC technology and an impetus to develop underlying technology to full potential, enhancing risk management and user experience. Interaction with the RegLab should also help NBG to develop its regulatory approach and update legal framework to enable smooth and sustainable CBDC technology operation. Furthermore, as an option, the Digital Bank Framework, could be utilized to facilitate CBDC development.

CBDC’s may become essential for the financial ecosystem and spur private innovation and development of new financial technologies. Therefore, full private sector involvement in technology choices, interface design, customer management, KYC and AML/CFT, regulatory compliance, and data management will be crucial. If you are developing CBCD technology and are interested in joining us in this ambitious journey, please contact us via the Financial Innovation Office at InnovationOffice@nbg.gov.ge. Please title the subject “PPP on CBDC” and provide a brief introduction about your company and your technology. Also, indicate whether you would like to offer solutions to a CBDC operator or be an operator of CBDC. NBG will consider range of proposals that facilitates the direct management of the CBDC by either the NBG or by a regulated private company.

Source: National Bank of Georgia

After a 10-year pause, Georgia has successfully returned to the international securities market and was able to place a Eurobond at an unprecedentedly low price for the country. The demand of investors was four times more than the amount of the bond, which once again underscores their confidence in the Georgian economy.

The issuance of Eurobonds by the state is important for the development of the capital market in the country, as well as for Georgian companies that are going to raise money from international markets.

The government Eurobond will be a benchmark for other Georgian current and future securities. The low benchmark will significantly help other Georgian companies to place securities in international markets at a better price.

“It is very gratifying that the state has placed Eurobonds on the London Stock Exchange on such unprecedentedly good terms. Positive investor sentiment was reflected primarily in increased demand and low interest rates, which are historically the lowest in the region. In the future, it will help develop the capital market in the country and Georgian companies to place bonds on international or local exchanges, “- said Vakhtang Butskhrikidze, CEO of TBC.

The eurobond volume is 500 million dollars, term 5 years, coupon 2.75%. This improtant deal was done with the help of international banks: JP Morgan, Goldman Sachs, and ICBC, as well as, Georgian investment banks TBC Capital and Galt & Taggart.

Source: TBC Capital, Ministry Of Finance of Georgia