PRESS RELEASE: Silknet successfully places bond issue with SP Advisors acting as International Sales Agent and Advisor

August 18, 2017. Tbilisi, Georgia. Silknet, the largest internet service provider in Georgia, has successfully placed GEL 34 million in 5-year bonds. The bonds carry a variable annual coupon rate made up of the National Bank of Georgia's (NBG) refinancing rate plus 3.5 percentage points. The bond placement itself attracted significant attention from leading Georgian and international institutional investors and financial institutions.

SP Advisors acted as the Exclusive International Sales Agent and Advisor for Silknet in placing bonds with international investors. Georgia's largest banking group TBC Bank acted as the Lead Manager and Underwriter for the bond issue. The bonds will be admitted to trading on the Georgian Stock Exchange.

"Working with one of Georgia's largest companies is a big honour. By floating the bonds with a high degree of interest from the investment community, Silknet is taking another step towards accessing international capital markets. After securing a ‘B+' rating in October 2016 from Fitch, this bond placement is the next step on the company's path. International investors are taking an interest in Silknet's strong corporate governance structure, but also in the Georgian market as a whole. I look forward to working closely with Silknet in the near future," said SP Advisors CEO Nick Piazza.

"The result of our work speaks for itself – we've raised the capital that will help us build our company's investment history as we work towards accessing international capital markets. We continue to strive towards demonstrating steady and responsible growth for Silknet and we're grateful to our partners like SP Advisors for advising us along that journey," said Silknet CFO Baia Pshavlishvili.

About Silknet
Silknet is the leading internet service provider in Georgia and one of the country's top providers of fixed telecommunications services. In 2016, Silknet secured a ‘B+' rating from international ratings agency Fitch Ratings. SP Advisors also acted as Silknet's Exclusive Advisor in securing that rating. Silknet owns the largest urban and rural fibre optic network in Georgia, and as of the first half of 2017, Silknet held a 41% share of the fixed broadband market, 30% of the pay TV market, and 48% of the fixed-line telephone market. The company is the largest provider of sports content in Georgia, with exclusive broadcast rights for the English Premier League, Spain's Primera Division (commonly known as La Liga), , the National Basketball Association (NBA), and other leagues and championships.

About SP Advisors
SP Advisors is a full-service investment house focused on advisory, asset management, and merchant banking, operating in Ukraine, Georgia, and Eastern Europe. Established in 2011, SP Advisors has assembled a veteran management and corporate advisory team with experience in the Eastern European investment space. SP Advisors partners with businesses in Ukraine and abroad, including international investment banks and legal, consulting, and audit firms.