Clearstream Spotlight
New link to Georgia extends Committed to coverage to the Caucasus strengthening ties
From 11 January 2016, Clearstream It also demonstrates Clearstream’s As an emerging market, dedicated will be expanding its international commitment to support efforts made to developing its financial markets, coverage by opening a new link by the Georgian authorities and Georgia offers many new to Georgia. This follows our market participants to align their opportunities for foreign investors. enhancement in November when domestic market infrastructure and For instance, in June 2014, Georgia we launched the Georgian Lari legal framework with international signed an association agreement with (GEL) as a full settlement currency, standards. As a second step, the EU, which includes plans for a thereby facilitating GEL-denominated Clearstream plans to open a new, free trade area, thus increasing Eurobond issuance through our similar link to Armenia, in the course attraction for foreign investors from ICSD issuance hub. of H1 2016, further strengthening our a regulatory and governance offering in the region. perspective. This new domestic link allows us to offer Georgian government bonds and The Bank of Georgia is a leading Other international institutions have supranational bonds via our new local driving force in the development of showed their commitment to this custodian and cash correspondent the Georgian capital market. It enjoys country, for example, the European bank (CCB), the Bank of Georgia. more than a third of Georgia’s current Bank for Reconstruction and As a first step, we will support market share. With stable ratings Development (EBRD) held its annual internal free of and against payment from all three major rating agencies, meeting in Georgia’s capital city, settlement in all eligible currencies it has issued USD 400 million Tbilisi this year: it was during this (including GEL) and external FOP Eurobonds since 2012. The Bank of meeting that the Vice-Governor of the settlement plus our full custody, Georgia has been listed on the National Bank of Georgia, Archil reconciliation and asset servicing London Stock Exchange since 2006; Mestvirishvili first announced their offering. We are planning to expand and has enjoyed premium listing collaboration plans with Clearstream. the service offering as demand grows. since February 2012. Similarly, the Tbilisi Silk Road Forum, Income and redemption proceeds supported by the Government of the will be handled in the local currency; People’s Republic of China and the while customers can choose payment Asian Development Bank, took place in either GEL or any other currency in October 2015. from our current offering. From a domestic market perspective, Georgia is Clearstream’s 55th link, in the past five years there has been reinforcing our leading position in a significant level of development of terms of domestic market coverage a new infrastructure in accordance by an ICSD. It is a key development with international best practise. in terms of market coverage as it For instance, omnibus accounts marks the first step in Clearstream’s have been permitted since 2010 strategic aim to increase access and the concept of nominee is now for our global customer base to accepted. the Caucasus region.
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