Update on Hospitality & Commercial Real Estate Business Developments

Georgia Capital PLC (the Group or Georgia Capital) today announces the buyout of the remaining 40% equity stake in an upcoming luxury hotel (the “Hotel”) by the Group’s Hospitality & Commercial Real Estate Business, owned through m² Real Estate (“m²” or the “Company”). Following its initial acquisition in December 2017, m² held a 60% stake in the Hotel, which is located on Mtatsminda hill - a neighborhood with one of the most spectacular panoramic views of Tbilisi. The total consideration for the buyout is US$ 5.2 million, where US$ 0.3 million is paid in cash and US$ 4.9 million is settled through bonds issued by the Commercial Real Estate Business. The placement of US$ 30 million local bonds with a 3-year tenor, which are backed by the rental income stream from commercial properties and carry an annual coupon rate of 7.5%, was launched in December 2018. The remaining proceeds from the bond issuance are earmarked to finance the development of hotels already in the pipeline.