ADB invests $40 mln in green bonds for climate-resilient water supply in Georgia

The Asian Development Bank had invested $40 million in a certified green bond issued by Georgian private corporate entity Georgia Global Utilities to enhance the water system in Georgia's capital of Tbilisi and neighbouring municipalities and building resilience against climate change on surface and groundwater resources, the bank said on Friday.

The financing includes debt investments of $20 million from the ADB’s ordinary capital resources and $20 million from Leading Asia’s Private Sector Infrastructure Fund 2, administered by the institution on behalf of the Japan International Cooperation Agency. 

The investment is part of the GGU’s $300 mln five year issuance and will be spent on modernisation of the supply network in Tbilisi and outskirts of the city, which will ensure a potable water supply for about 1.4 million residents,  the bank said.

Suzanne Gaboury, the ADB Director General for Private Sector Operations, said the anchor investment in the green bonds would boost international confidence in Georgia’s capital market and enhance the country’s climate resilience.

The investment marks the beginning of a new partnership with the Spanish water management company FCC Aqualia S.A. and strengthens our relationship with Georgia Capital. The ADB is committed to supporting developing member countries in mobilising domestic and foreign private capital for bankable and impactful development projects”, Gaboury said.

Isidoro Marbán, the Chief Financial Officer for FCC Aqualia S.A., said the aim of the issuance investment implementation was to improve access to safe and reliable water for residents.

GGU’s green bond issuance aims to finance important investments that will improve Georgians’ access to safe and reliable water supply while supporting the country’s adaptation to the adverse effects of climate change. This landmark transaction promotes sustainable financial instruments and standards in Georgia and the Caucasus region”, Marbán said.

The ADB has invested over $800 million in Georgia’s water sector since 2011, while GGU is owned by Aqualia Georgia and Georgia Capital, one of the country’s largest investment companies. Aqualia Georgia is a subsidiary of FCC Aqualia S.A., which operates in 18 countries.

The German Development Finance Institution, the European Bank for Reconstruction and Development and the International Finance Corporation also participated in the bond issuance.