|Georgian Railways Hires JP Morgan, Merrill for Eurobond Sale|
|June 14, 2010|
By Helena Bedwell
June 14 (Bloomberg) -- Georgian Railways, the former Soviet republic’s state-owned rail company, said it hired JPMorgan Chase & Co. and Merrill Lynch to manage a sale of Eurobonds, without elaborating on the amount or the schedule.
“We already have signed agreements with JP Morgan and Merrill Lynch to place our Eurobonds on the market, but we cannot say when or what amount is being discussed,” the company’s director general, Irakli Ezugbaia, said in an interview in Tbilisi today. “We cannot talk about the details as it will raise expectations on the market.”
Georgian Prime Minister Nika Gilauri said on Feb. 24 that the rail company may sell as much as $200 million of Eurobonds. Ezughbaia declined to confirm the amount. He also couldn’t say whether the government may sell Georgian Railways, whose annual capacity is set to reach as much as 20 tonnes this year.
The company’s only outstanding bond is a 25 million lari ($14.5 million), 13.5 percent security due in 2011, according to Bloomberg data.
Merrill Lynch is a unit of Bank of America Corp.
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