Asian Development Bank, International Finance Corporation invest $24mln in Georgia's first locally listed green bond
A subscription of $20 million in the $80 million issuance has been invested by the IFC, while $4 million have been contributed by the ADB to the bond issued by Georgian Renewable Power Operations - an affiliate of Georgia Capital, a leading investment management company in the country. Photo: qartli wind power plant
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In a bid to promote climate finance and capital market development in Georgia, the International Finance Corporation, the European Bank for Reconstruction and Development and the Asian Development Bank have invested in the country’s first green bond.
A subscription of $20 million in the $80 million issuance has been invested by the IFC, while $4 million have been contributed by the ADB and $13.8 million by the EBRD to the bond issued by Georgian Renewable Power Operations - an affiliate of Georgia Capital, a leading investment management company in the country.
This is the largest domestic corporate bond placement in Georgia to date. The landmark transaction and IFC’s anchor subscription is expected to help mitigate climate change by avoiding around 170,000 tons of CO2 emissions annually, equivalent to greenhouse gases from over 33,000 vehicles", the IFC said.
The announcement said the IFC investment would also help set a precedent, “encouraging alignment with good governance”, environmental and social standards to develop more renewable energy projects in Georgia.
With the first green bonds issuance in Georgia, IFC’s timely funding will help boost renewable energy development in the country. Given that Georgia’s corporate bond market is still nascent, we are confident IFC’s support will help deepen the nation’s debt capital market, creating jobs, improving energy security, and driving sustainable economic growth,” said Ivana Fernandes Duarte, IFC’s regional manager for the South Caucasus.
Meanwhile, ADB private sector operations department senior investment specialist David Urbaneja-Furelos said the bank’s assistance would support further development of Georgia’s local capital market "through the first domestic green note and largest bond to be listed in the country.
This investment builds on our track record as an anchor investor in Georgia’s past green bonds and shows how our involvement in these and other debt instruments can help our members to meet their climate goals", he said.
GRPO operates a portfolio of five renewable power projects, including four hydropower plants with a total installed capacity of 50.4 megawatts and Georgia’s only wind power plant. The company said it would use the new funds to support its ongoing operations.
The Asian Development Bank (ADB) has invested $20 million in green bonds issued by Georgian Railway with the proceeds to be used primarily to roll over maturing Eurobonds that it had issued to improve existing railway lines as a part of an ongoing modernisation project, announces the ADB.
The Ministry of Finance of Georgia has completed the placement of $500 million Eurobonds on the London Stock Exchange with a maturity date of five years and a coupon rate of 2.75%. Georgian Finance Minister Lasha Khutsishvili says the state budget of Georgia will save about 350 million GEL thanks to the low coupon rate.
The Asian Development Bank (ADB) announced an investment of about $20 million in green bonds to be issued by Georgia Global Utilities JSC (GGU), with proceeds to upgrade the water supply system and sanitation in Tbilisi and nearby municipalities, and to refinance debt of renewable energy and water operations.
The International Finance Corporation (IFC) is issuing a 30 million GEL bond (about $15 million USD) to support Georgia’s capital markets. This is IFC’s first local currency issuance in Georgia.
Current and future projects funded in Georgia by the European Bank for Reconstruction and Development were discussed on Thursday in a meeting between the Georgian finance minister Lasha Khutsishvili and Jurgen Rigterink, the first vice president of EBRD.
Lasha Khutsishvili, the Georgian finance minister and Koba Gvenetadze, the head of the country’s National Bank, within the framework of the visit to the United States, held meetings with the executive director of the International Monetary Fund Paul Hilbers, the director of the Middle East and Central Asia department of IMF, Jihad Azour, and the director of the IMF fiscal affairs department, Vítor Gaspar.
Georgian economy minister Levan Davitashvili on Wednesday highlighted the potential of the renewable energy sector of the country’s economy at an international conference hosted in Tbilisi, where he said attracting investments in the area was a “main priority” for the government.
The Asian Development Bank has approved a $100 million policy-based loan to deepen Georgia’s reforms to fiscal management, capital markets and the country’s pension system, the bank announced on Thursday.
Georgian finance minister Lasha Khutsishvili and Rana Karadsheh, International Finance Corporation’s regional director for Europe, on Tuesday discussed cooperation between the country and the international company, the ministry of finance said.
Sectoral cooperation between the Georgian Government and the European Bank for Reconstruction and Development in areas including infrastructure was discussed on Tuesday in a meeting between officials from the country and Mark Bowman, the EBRD Vice President for Policy and Partnerships.