OREANDA-NEWS.  Clearstream, the international central securities depository (ICSD) of Deutsche Börse Group, will expand its international coverage by opening a new domestic link to Georgia on 11 January 2016. The link will help foreign investors to access the local market and enables Clearstream to offer Georgian government bonds and supranational bonds via the Bank of Georgia, which acts as local custodian and cash correspondent bank.
Georgia is Clearstream’s 55th domestic link, affirming its leading position in terms of market coverage as an ICSD. The product offering will include internal free of and against payment settlement in all settlement eligible currencies, including the recently accepted Georgian Lari (GEL). Further available services are external free of payment settlement, custody and reconciliation as well as asset servicing.
Berthold Kracke, Head of Business Management and Member of the Clearstream Executive Board, said: “The new link to Georgia is an important milestone as it marks another step in Clearstream’s strategic aim to increase access for our global customer base to the Caucasus and CIS region. It also demonstrates Clearstream’s commitment to support efforts made by the Georgian authorities and market participants to align their domestic market infrastructure and legal framework with international standards.”
Clearstream’s partner, the Bank of Georgia, is a dedicated participant in the development of the Georgian capital market and covers more than a third of Georgia’s current market share by assets.
Murtaz Kikoria, CEO, JSC Bank of Georgia commented: “I am pleased that Bank of Georgia becomes the local custodian and cash correspondent bank (CCB) for Clearstream and am excited about our prospects of partnering with Clearstream in expanding its international coverage by opening a new link to Georgia. It is an important step forward in terms of market coverage for Clearstream and another major boost for Bank of Georgia to be at the forefront of the capital market development in Georgia.”
The new link to Georgia is also an important step for the National Bank of Georgia, who acts as central securities depository (CSD) for government bonds.
Giorgi Kadagidze, Governor of the National Bank of Georgia, said: “The enabling of the Georgian link by Clearstream is a major milestone for capital market development in our country. It will work as a platform for European and international investors helping them to discover the Georgian market, which already features a liberal tax regime, ease of entry and exit and a leading market infrastructure. This was a long anticipated event and we hope to see increased activity of international investors following this announcement. We look forward to continuing cooperation with Clearstream in other areas aimed at developing the local capital market, which will bring mutually beneficial results.”