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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Georgia Capital Plc | CGEO | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 1,314.00 | 08:13:22 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 1,314.00 | 1,314.00 | 1,314.00 | 1,314.00 |
| Industry Sector |
|---|
| GENERAL FINANCIAL |
| Top Posts |
|---|
Posted at 01/3/2024 15:57 by pj84 Georgia capital features in the above article and the shares will be benefitting today from B of G's continued strong rise. |
Posted at 23/12/2023 12:46 by pj84 Also in December’s report – and in the month Georgia was granted EU candidacy status – we look at the surge in popularity with Elite Investors of some of the country’s leading financial businesses. London-listed Bank of Georgia (GB:BGEO), TBC Bank (GB:TBCG) and Georgia Capital (GB:CGEO) have all gained AAA ratings during 2023. Read more. |
Posted at 30/10/2023 11:22 by davebowler Nick Greenwood-Georgia Georgia has made significant progress over the past decade, with its GDP per capita increasing by 55% from 2011 to 2021. Despite an improved economic outlook in recent years, investor appetite for Georgia has been muted, with sentiment impacted further by Russia’s invasion of Ukraine last year – which stoked memories of the conflict between Russia and Georgia in 2008. As a result of the Russian invasion of Ukraine, many highly skilled Russians, particularly IT professionals, have moved across the border to Georgia. This has given the economy a further recent boost. Nevertheless, with non-existent demand for Eastern European strategies in recent years, the country remains firmly out of the investor spotlight. While there may be no near-term catalyst for Georgia, the significant valuation mispricing is simply too compelling to overlook. We have a position in the London-listed Georgia Capital (CGEO), which was spun out of Bank of Georgia after the combined entity became too large to manage at 16% of GDP. The portfolio has investments in various areas such as wine, motor insurance, education, renewable energy, water supply and its listed stake in the Bank of Georgia. With a current discount of 60% – this represents a major mispricing opportunity, given our optimism in the country’s internal dynamics. |
Posted at 09/9/2023 15:25 by pj84 The following is the link to the latest Edison report on Georgia Capital. It is quite long so I have just posted the comments at the start and in particular on the bond refinancing. At first look the new bonds with a coupon of 8.5% seem quite high but not when you read the full context below. The forecast GDP growth of 5% pa out to 2028 looks very encouraging as well.7 September 2023 Georgia Capital — Successful bond refinancing improves risk profile Georgia Capital (GCAP) delivered positive newsflow during August, including the successful pricing of its new sustainability-linke Milosz Papst GCAP made further progress on its deleveraging agenda in H123 Georgian economy remains strong GCAP provides diversified exposure to Georgia, mostly through resilient, marketleading businesses in sectors such as healthcare, pharmacy, financials, renewable energy and education. The Georgian economy has proved its resilience throughout the COVID-19 pandemic and the war in Ukraine and maintains its solid momentum, with H123 GDP growth of 7.6% y-o-y (after 10.1% in 2022), assisted by a healthy combination of external demand, FX flows and local credit expansion. At the same time, inflation remains contained, standing below the 3% central bank target since April 2023. The International Monetary Fund forecasts 4.0% GDP growth in 2023 and 5.0% growth pa in 2024–28. Galt & Taggart and TBC Capital (local brokers) expect 2023 GDP growth of 6.8% and more than 7.2%, respectively. A quality play on the local economy We believe that GCAP’s value proposition is underpinned by the following drivers: 1) 26% of its end-June 2023 NAV is attributable to the listed Bank of Georgia, a highly profitable bank (H123 ROE at 31.3%) and one of the local leaders, now trading at a moderate 1.0x book; 2) 92% of its portfolio is valued externally, with most of its private holdings valued by a third-party specialist; and 3) GCAP receives a steady income stream from dividends and buybacks from its holdings, with management expecting GEL150–160m of regular distributions in 2023 (GEL205–215m including one-off distributions), implying a 4.5–4.8% yield on its end-June 2023 portfolio value (6.1–6.4% including one-off distributions). Successful refinancing of the 2024 Eurobonds On 1 August 2023, GCAP announced that it has successfully priced a US$150m, five-year sustainability-linke The bond bears a fixed coupon of 8.50% and was issued at par, which compares to a 6.125% fixed coupon for the previous bond (issued in March 2018). GCAP secured a quite attractive rate when compared to the local interest rates in Georgia (the current central bank refinancing rate is 10.25%), and the rate on GCAP’s bonds is also close to the US corporate high yield bonds (the effective yield of the ICE BofA High Yield Index at 1 August 2023 was 8.23%). Importantly, given the lower volume of the new bonds versus the US$300m Eurobonds, GCAP will reduce its overall interest expenses. The new bonds were rated ‘BB-’ by S&P, which represents a one-notch upgrade compared to the previous Eurobonds. Key financial covenants embedded in the bond include: 1) net debt to total equity must be less than 45%; 2) payments such as dividends or capital stock redemptions will be restricted to 50% of end-2022 retained earnings and 50% of consolidated net profit thereafter; 3) interest coverage should be at least 100%; and 4) dividend payments and other distributions from material subsidiaries can be restricted only up to 50% of net profit of the material subsidiary. The sustainability-linke |
Posted at 29/8/2023 22:21 by pj84 Bank of Georgia boosts Georgian Capital as analysts eye opportunityGeorgia Capital, which invests mainly in private equity in the ex-USSR region, has seen a significant share price return thanks to its listed holdings, including Bank of Georgia. Michelle McGagh Georgian private equity may make up the majority of Georgia Capital (CGEO) but its listed holdings have helped the net asset value (NAV) to reach a record high and its share price to rise. Half-year results from the £403m investment company, which cover the six months to 30 June, showed the portfolio grew to a record high in the second quarter of this year, with the NAV increasing 8.2% over the three-month period in Georgian lari terms. This helped the fund deliver a NAV increase of 11.8% in the first half of the year. The NAV per share rose 8.2% in the quarter in GEL terms and 11.8% for the first half of the year. The strong figures are in part thanks to UK-listed Bank of Georgia (BGEO), which is the largest holding in the fund at 26.3%. Bank of Georgia saw its shares grow 6.4% in the second quarter of the year following strong earnings and share buybacks. Numis investment company analyst Priyesh Parmar said the performance of Bank of Georgia is putting the fund ‘on the radar of a wider range of UK equity income investors and could help drive a re-rating’. ‘We believe that the Georgian economy remains well placed to deliver strong growth over the next few years, as it has consistently done over the last two and a half years,’ said Parmar. The performance of the fund was also boosted by the vaguely-named ‘water utility’ that makes up 4.7% of the portfolio. The investment company sold 80% of its stake in the utility business for $180m in 2021. Irakli Gilauri, the chief executive of BGEO, said he has a ‘clear exit path through a put and call structure at a pre-agreed EBITDA multiple’ for the remaining 20% holding in the business. The fund also tackled the upcoming maturity of the $300m of Eurobonds issued by JSC Georgia Capital, the holding parent of the fund. Gilauri said he took a ‘proactive stance’ to refinancings and ‘identified an opportunity to effect a landmark transaction by issuing sustainability-linke The five-year bonds, which pay an 8.5% coupon, attracted ‘an unprecedented level of interest in Georgia, with total demand reaching $200m’. Gilauri said he was ‘particularly impressed’ by the number of retail investors, with the bond achieving the highest retail volume in the history of Georgia’s capital markets. Numis analyst Parmar agreed that the bond refinancing was a ‘key milestone’ and this, along with the favourable returns, make it an attractive investment. ‘We have consistently been highlighting this as an opportunity,’ Parmar said. ‘Management continues to deliver on its strategic goals, strengthening the balance sheet helped by strong cashflows from the portfolio.’ However, he said, Georgia Capital’s discount remains ‘extreme&rsquo |
Posted at 31/12/2021 13:49 by jeff h I find the below link helps when assessing CGEO:- |
Posted at 15/9/2019 11:29 by loganair MoneyWeek - Adventurous investors should head for the frontier in Georgia by David C Stevenson 13/08/2019:Georgia Capital, a London-listed investment fund, is trading on a big discount and looks a good bet for the brave. One of the great virtues of the London stockmarket is that there’s a healthy number of funds to appeal to investors looking for the next frontier. One of the lower-profile examples is Georgia, a destination that probably isn’t on the radar for many people, but represents an interesting prospect for the brave investor. Solid fundamentals Georgia is a tiny state nestled on the western edge of the Caucasus mountain range. It has a population of just 3.7 million, yet boasts a number of advantages. Its government is trying to stay friendly with the West as well as with Russia – although every once in a while its overbearing northern neighbour throws a tantrum and threatens exports. National markets are steadily opening up to international competition (Turkey is one key trading partner) and Georgia is keen to position itself as a transit point in trade between Central Asia and Europe. Its lack of commodity wealth is also probably something of a positive, making local businesses work harder for their profits. The economy has been growing at a fairly steady 4% to 6% clip since 2017 with inflation on target to stay below 3%, and a rapidly improving trade deficit. National finances look stable with interest rates at 6.5% and central-bank foreign-exchange reserves steadily growing. A promising fund Bank of Georgia, a local bank, has been listed on the main segment of the London Stock Exchange since the spring of 2012. Back in 2018 it decided to de-merge into two separate businesses: Bank of Georgia (LSE: BGEO), the banking business; and Georgia Capital (LSE: CGEO), the investment fund business. At the time I thought that this investment arm was interesting, but timing wasn’t ideal and the demerger took place at net asset value (NAV), which I thought might be a bit rich. Rows then developed with Russia, which helped knock sentiment and since the demerger the shares have drifted ever lower. At the current share price of around £10 a share, the discount to NAV looks to be about 30%, which strikes me as better. In simple terms, Georgia Capital is a hybrid fund, containing of two main components. The biggest chunk (60%) consists of substantial holdings in Bank of Georgia (19.9% stake) as well as a 57% stake in Georgia Healthcare (LSE: GHG). These are both performing well. Georgia Healthcare has recently announced a dividend policy, and plans to pay out 20%-30% of annual profit. Bank of Georgia’s shares are still lowly priced, trading at 1.4 times book value, on a price-to-earnings ratio of around five and a dividend yield of over 10%. Fast-growing private equity The other portion of the portfolio is a fast-expanding range of private-equity holdings. Recent investments include an 80% equity interest in Green School, the leading affordable private school, and an 80% interest in Amboli, the second-largest auto-service firm. In March, Georgia Capital’s drinks operation acquired the brand name and commercial assets of Kazbegi, the country’s oldest beer brand, for $3.65m (£3m). Meanwhile, the renewable energy business has commissioned the 30MW first phase of the Mestiachala hydro power plant, with a further 20MW second phase under way. This frenetic pace of activity shows up in the latest reported quarterly numbers which showed a 7.2% return in local currency terms for the first quarter of this year (3.5% in sterling terms) – comprised of a 12.1% total return in local currency from the listed portfolio companies and a 2.1% total return from the private portfolio companies. Overall, I think Georgia Capital now looks like a good bet as long as Georgia can keep on good terms with Russia. |
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