In September, J.P. Morgan added Georgia’s lari-denominated government securities to its GBI-EM Edge index, with a 1.79% weighting in an index tracking about $328 billion. J.P. Morgan estimates the average nominal yield on the bonds at around 10.4%.
A capital market in the making
Index inclusion is a milestone for a market that was very small until recently. Georgia’s domestic non-government bond market has grown from GEL 106 million in 2014 to GEL 6.4 billion in 2025. In September the National Bank of Georgia, the Georgian Financial Markets and Treasury Association and Nasdaq presented a concept for further market development at a dedicated forum.
Why it matters for leaders
Index-tracking investors bring steadier demand for government debt, which over time can lower borrowing costs across the economy. For larger Georgian companies, a deeper local bond market is a realistic alternative to bank loans, and a reason to prepare governance and reporting to the standard bond investors expect.
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Photo: Tötös Ádám / Unsplash