ADB invests $15mln in BasisBank’s certified sustainability bond in a first in Georgia
It added Georgia’s central bank had mandated banks to apply the Sustainable Finance Taxonomy to report on their environmental and social activities, adding climate change finance through financial institutions was a priority for the Government across all sectors of the economy. Photo: ADB
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The Asian Development Bank on Friday said it had invested $15 million as an anchor investor in a three-year sustainability bond issuance by BasisBank, Georgia’s fourth-largest bank, marking the first certified sustainability bond issued by a commercial bank in the Georgian Stock Exchange.
The ADB also said the bond would finance green and social sector projects, with Suzanne Gaboury, the ADB Private Sector Director General, noting the “pioneering transaction will deepen Georgia’s capital market by increasing awareness of thematic bonds that adhere to international standards while funding green and social projects”.
The institution also said Georgia had updated its nationally determined contributions as part of the 2015 Paris Agreement. The country has committed to reducing its greenhouse gas emissions to 35 percent below its 1990 baseline level by 2030.
It added Georgia’s central bank had mandated banks to apply the Sustainable Finance Taxonomy to report on their environmental and social activities, adding climate change finance through financial institutions was a priority for the Government across all sectors of the economy.
Ekaterine Mikabadze, the Vice Governor of the National Bank of Georgia, said the ADB’s move would contribute to the overall development of the capital market.
She also highlighted “continuous growth” in the securities market in Georgia, particularly in green, social, and sustainability-related bonds.
A strong corporate bond market is an important alternative to traditional financing. It allows companies to raise capital more efficiently and potentially at lower costs. The securities market in Georgia is constantly expanding and shows significant growth in green, social and sustainability and sustainability-related bonds”, the Vice Governor said.
Mikabadze added six companies had issued green, social, or sustainability bonds, collectively raising up to ₾550 million ($204.10mln) in the country last year.
She expressed optimism the “positive trend” of the ESG bond market would continue, indicating the trend would play a “central role in the financial structure”.