EBRD backs Georgia's Nova Group with €3.2 million bond investment

The European Bank for Reconstruction and Development (EBRD) is investing up to GEL 10 million (€3.2 million) in the first local currency bond from Nova Group, a leading Georgian producer and retailer of construction and home improvement materials, according to a press release. The GEL 50 million (€16 million) bond will be listed on the Georgian Stock Exchange with a tenor of up to five years. The money will fund capital spending, cover working capital needs and refinance existing loans.

This deal is a milestone for Nova and an important step for Georgia’s domestic capital markets. Nova started in 2006 as a roofing materials producer and has grown into one of Georgia’s top manufacturers and retailers of construction materials.

The EBRD will also help Nova roll out a corporate governance action plan. This includes steps to strengthen board operations, internal controls and ethical standards, reinforcing Nova’s commitment to best practices.

The investment fits with the EBRD’s goals of deepening Georgia’s local capital markets, diversifying funding sources for companies and building financial resilience. By backing Nova’s first bond, the Bank is helping to bring longer-term instruments into the market, boost liquidity and set a benchmark for future issuers. The deal will also push higher transparency and governance standards through public listing and disclosure requirements.

The EBRD is a leading institutional investor in Georgia, where it works to build sustainable private-sector growth, improve access to finance and promote good governance. So far, the EBRD has invested more than €5.7 billion across 316 projects in Georgia’s financial, corporate, infrastructure and energy sectors, with 84 percent going to the private sector.