London, 12 February 2007 – LAWFUEL – Banking & Business Law – Ba…

London, 12 February 2007 – LAWFUEL – Banking & Business Law – Baker & McKenzie, London has acted for Bank of Georgia on its US$200 million offering of 9% Loan Participation Notes due 2012 and listing of the Notes on the London Stock Exchange. Bank of Georgia’s eurobond offering is the first ever eurobond offering by a Georgian company.

Bank of Georgia is the largest bank in Georgia based on equity, assets and loans. In November 2006 it completed its initial public offering of shares on the London Stock Exchange, which was the first ever international securities offering by a Georgian company. Baker & McKenzie also acted for the Bank on its IPO.

The eurobond offering was structured as an issuance of loan participation notes by BG Finance B.V., a Netherlands orphan special purpose vehicle, with the proceeds of the offering being used to finance a loan to Bank of Georgia. The Bank will use the proceeds of the loan to repay existing indebtedness, to fund its organic growth, including the expansion of its lending activities, and for general banking purposes.

Lado Gurgenidze, Chairman of the Supervisory Board of Bank of Georgia, said: “In the absence of a sovereign benchmark, we are pleased to have facilitated the road to the international debt capital markets for other Georgian issuers. I would like to thank all of my colleagues and our world-class advisory team for their outstanding work on this deal.”

Carter Brod, Capital Markets partner at Baker & McKenzie, said: ”Following the success of its IPO last year, we are delighted to have acted for Bank of Georgia on its debut eurobond transaction. It was a pleasure working with the Bank of Georgia team on these two exciting landmark transactions from Georgia.”

The Baker & McKenzie team was led by Capital Markets Partner Carter Brod, and included associate Kathryn Rea and trainee solicitor Alex Roberts.

Merrill Lynch acted as Lead Manager of the offering, and was advised by White & Case as to English law and BGI Legal as to Georgian law. Bank of Georgia was advised by DLA Piper as to Georgian law.

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