Georgian Railway released audited 1H21 results. The company generated US$ 83.6mn (+3.4% y/y) in revenue and US$ 38.2mn (+3.3% y/y) adjusted EBITDA in 1H21. The growth was mostly driven by increased revenue from sale of scrap (+US$ 3.3mn) as well as higher freight transportation revenue (+US$ 1.6mn). In 1H21 GR managed to bring back liquid cargo transportation volumes, hitting highest level in 6 years. Namely, GR transported 2.1mn tons of oil products in 1H21, up 46.7% y/y, boosted by transportation volumes from Turkmenistan and Azerbaijan. On a negative note, GR’s dry cargo transportation, which makes up 65% of total transportation volumes, declined by 3.2% y/y in 1H21. Passenger transportation, which was the hardest hit revenue category for GR during the pandemic, remained under restrictions for some part of 1Q21, however positive trends are observed from 2Q21. Furthermore, freight handling and freight car rental, which together accounted for 20% of 2020 revenue, continued declining in 1H21, down 15.8% y/y to US$ 13.0mn. GR maintained strong profitability margins, with adjusted EBITDA margin standing at 45.7% in 1H21. Yield on GR’s new green Eurobond has been declining since issuance, standing at 3.7% by 7 October 2021. Notably, spread vs sovereign GEORGIA 26 has declined from c. 150bps in summer months to c. 120bps by end-Sep 2021.