IFLR 1000
The Guide to the World's Leading Financial Law Firms

A number of firms are quite enthusiastic about the 2010-11 period in Georgia. "In the last six to eight months there has been growth in finance work, which is astonishing given what you hear about the market, [and] we have seen commercial banks offering some offside services, letters of credit, financing and so forth," says a lawyer.

Another explains that the "political situation has stabilised, Russia won't attack again. There has been quite an impressive growth of 6.2% – 6.4% in the economy in 2010 when the World Bank was only predicting 4% at the start, and some projects were earmarked a couple of years ago and they are now starting". "2010 was not as before the economic crisis but figures are not far behind and there are some longer term investments," concludes one partner.

However, some prominent commentators argue that in reality, from 2010 to 2011, Georgia has experienced a flat-lining economy. "Some firms have been getting work and great mandates, but overall the quality has not continued on an upwards trend," says a partner.

International financial institutions still drive the economy, most prominently the International Finance Corporation (IFC), Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The government has been working very hard to attract private investment to Georgia and, says one partner: "We have got to have the most modernised government in the world - all notifications are on a database, you can do everything online, all licensing is computerised."

But it is not yet enough, and one example of a shortfall is in corporate tax, which is very favourable on the surface. "They are really trying a deep tax reform, tax law reform and administrative reform to liberalise the rules of enforcement and support tax payers' rights, lessen the extremity of tax penalties," says one partner adding the caveat: "They find violations where there were none and this becomes a way to raise tax; low taxes but high penalties."

There have been some very large private transactions in the market. The Georgian Railways $250 million Eurobond issue, the first ever by a government entity, BP's $30 billion project to increase capacity in the South Caucuses pipeline from the Caspian Sea to Turkey, Maersk's investment into the Poti Port on the Back Sea and a series of investments in hydropower have been the highlights of 2010-11.

The deals exploit Georgia's strongest assets: its strategic geographical location and vast hydropower reserves (which an estimated 70-80%, or about $3 billion worth of investment, is yet untapped). Mining has also seen some activity on the back of high copper and gold prices. There has also been talk of Ryanair opening a direct route from London to Tblisi.

BGI Legal had a very strong 2010-2011 period with partner Lasha Gogiberidze and associate Unana Gogokhia advising on all the firm's major corporate and finance deals.

The firm acted on the first ever bond issuance by a Georgian government entity, advising JPMorgan and Merrill Lynch on the $250 million bond issued by Georgian Railways in July 2010 opposite global counsel Dewey & LeBoeuf.

The firm acted opposite the US firm in two further deals including an $8 million financing from the European Bank for Reconstruction and Development (EBRD) for the infrastructure rehabilitation of the Poti Sea Port, and a $500 million deal involving restructuring of Georgian sovereign bonds, a tender offer and issue new ten year maturity bonds arranged by clients JPMorgan and Goldman Sachs.

In a fourth deal, still pending at the time of writing in July 2011, the firm was advising Dutch bank FMO on a $15 million financing for the largest real estate property development to create a new residential area outside of Tbilisi.

DLA in many respects leads the field and its international presence differentiates it from competitors. As opposed to its competitors, it also has the ability to engage integrated cross border teams (from different DLA offices) to act on different facets of the same deals. Ted Jones is the lead partner in the firm.

"Really good," says a client, "the services were top quality and up to any US or EU standards." Another client who worked with partner Avto Svanidze says: "Svanidze was our contact and depending what we needed he could get a junior or someone more senior, we liked him a lot... and now we starting to use DLA Piper in Russia and even in Sweden."

In 2010-11, the firm, led by Otar Kipshidze in conjunction with Brussels and Dubai partners Delphine Nougayrede and Simon Davidson, advised Maerksk – APM Terminals Management on its acquisition of a majority stake in the Poti Sea Port Corporation (owner of one of Georgia's two major Black Sea ports) from Emirates-based seller Rakia.

A team led by Svanidze was advising Marrusia Beverages on corporate, tax and regulatory matters in relation to an on-going deal involving one of the largest wine-making businesses in Georgia. The firm has also been advising Indian oil and gas company Vectra on a production sharing agreement, OPIC on a string of deals around the $10 million mark and some global investment banks on a series of swaps and derivatives deals on the Georgian railway.

BLC had a very strong 2010 which saw it break into the capital markets with a string of mandates for state entities. The firm is the only one with an office in Batumi.

Clients speak highly of the firm, according to one: "We had a good experience; we hired them to execute an international finance agreement and were really impressed with their assistance, more than satisfied, we both learnt a lot working together."

Another client says the firm is "always available, no issues ever, ready to communicate always... good network and good on cross border work opposite international financial institutions and investors".

Levan Dadiani is recommended by clients for being "very educated and experienced, top quality contributions... very good" and "smart and competent". Alex Bolkvadze is reputedly strong in energy matters while Ketti Kvartskhava is described by a peer as "a very impressive litigator, very charming and very good with clients".

The firm scored a coup with its role on the first ever bond issuance by a Georgian government entity, with Dadiani and Bolkvadze advising Georgian Railways alongside Dewey & LeBeouf on its $250 million Eurobond issuance. The firm also worked with Dewey & LeBeouf and Baker & McKenzie on two other issuances for the Bank of Georgia and a sovereign bond for $200 million and $500 million respectively.

The firm, with Bolkvadze in the lead, was active in energy, handling 85% of all investments in the sector among them advising Anadolu Group, on the construction of the 85MW Paravani hydro-power plant (HPP) in Southern Georgia, Kolin Construction and Limak Holding on a tender for the construction and operation of 104MW HPP cascade on the river Tekhuri and JV Group on a the regarding the construction and operation of 450MW HPP in Namakhvani.

On the finance side, the firm has continued to advise HSBC Georgia and recently helped the European Bank of Reconstruction and Development (EBRD) on an $18 million loan to retailer Populi and Georgian Railways for a $100 million loan from the EBRD.

The firm is slightly smaller in numbers than some of its competitors but it is very highly respected by the market, especially thanks to managing partner Giorgi Begiashvili but also due to the quality of some of the individuals in the group.

The firm has a good name in the energy sector.

MKD keeps its position in the rankings. The firm is slightly larger in numbers than some of its direct competitors and has a very solid position across the corporate and finance spectrum.

Victor Kipiani in particular holds the mantel in the corporate and finance transactional arena. The firm grew in 2010-2011 with the addition of Zannis Mavrogordato, who is also UK bar qualified.

During 2010-2011 the firm won a number of mandates from high profile clients, among them the African Development Bank, the European Bank for Reconstruction and Development (EBRD), Donald Trump (on a large real estate transaction), Microsoft and Nokia.

Business Legal Bureau (BLB) was established in 1995 and is recommended by some peers notably for the English speaking Kakha Sharabidze.

Sharabidze is the former CEO of Loyal Estate, the developer of the $200 million Park Hyatt International five-star hotel. The long running post kept him out of BLB for a few years but he has since returned. Sharabidze is experienced in working with international institutions including the European Bank for Reconstruction and Development (EBRD) and OPIC.

Nick Gvinadze manages Gvinadze & Partners with the support of five associates and one of counsel, many of whom have worked together for over 20 years. The team, recently split from the DLA Piper network, has tax expertise and counts on international backgrounds with UK qualified associate Lesley Rogers and Russian experienced of counsel Ivan Khokhlov.

Gvinadze is well versed in acting for and working with international financial institutions and global companies, and has a strong reputation for litigation. While with DLA Piper, the team built considerable experience advising BP Oil & Gas on the South Caucasus Pipeline (SCP) project.

In 2010-11, significant mandates included the firm's advise to Agritechnics Holding, Avon Cosmetics and Borusan Makina Georgia on various corporate, tax and regulatory matters. It acted for Frontera Resources on various oil and gas exploration matters and the Silk Road Group on a number of issues.

Nodia, Urumashvili & Partners, under the auspices of Lasha Nodia, gets good feedback from clients especially in the banking field.

According to one client, "their communication is very good, I can get them any time; they have a former Supreme Court judge who handles litigation, a New York bar qualified lawyer and one a former head of Société Générale [subsidiary in Georgia] and they are very good at banking law".

The firm's banking experience has been greatly boosted by its long term relationship with Bank Republic, which is owned by Société Générale. Partner Nino Bakakuri has a good name in the market: "very smart we like her a lot and have referred work to her," says a peer from a leading firm.

In recent work, the firm advised Bank Republic on the $15 million acquisition of shares in Begi Company, the largest flower producing company in Georgia. The deal was part of a life or death restructuring to avoid bankruptcy and has allowed Begi to continue trading under the same name.

In 2010, the firm advised the Bank of Georgia on tax and property issues in relation to assets worth $2 billion. The firm also advised Real Estate Holding and Business Centre on Vazha on a $50 million development and construction of a complex in central Tbilisi. On a fourth deal, the firm acted foreign client Chiyu Banking Corporation a $3.5 million ship mortgage loan.