ADB invests $4 million in the first Georgia-listed green bond

The Asian Development Bank (ADB) invested $4 million in a green bond issued by Georgian Renewable Power Operations (GRPO), which will use the funds to support its ongoing operations.

The investment will also provide additional capital to GRPO’s parent company, Georgian Renewable Power Company Group JSC, to support its renewable energy business.

ADB’s investment is part of GRPO’s $80 million issuance of a 5-year green bond, the first Georgia green bond to be traded in the country and the largest publicly traded bond on the Georgia Stock Exchange. .

The ADB will also manage a $4 million subscription to the bond by the Asia Private Infrastructure Fund (LEAP).

ADB and AFD renew their partnership with a joint co-financing target of $3 billion by 2025

“The ADB’s assistance will support the development of Georgia’s local capital market through the first national green bond and the largest bond to be listed in the country,” said ADB Private Sector Operations Department Principal Investment Specialist David Urbaneja-Furelos.

“This investment builds on our track record as an anchor investor in previous Georgia Green Bonds and shows how our participation in these and other debt instruments can help our members achieve their climate goals.”

For his part, the President and CEO of Georgia Capital, Irakli Gilauri added that “the transaction has aroused great interest among investors, who have been able to access capital even in the current unprecedented times. We are grateful to ADB for having played a key role as one of the strategic investors in the note.”

GRPO manages a portfolio of five renewable energy projects, including four hydroelectric plants with a total installed capacity of 50.4 megawatts, and the only wind power plant in Georgia.

In 2020, ADB participated in a green bond issued by GRPO’s predecessor company, Georgia Global Utilities JSC.

GRPO is a subsidiary of the GRPC Group, which is 100% owned by JSC Georgia Capital. In turn, JSC Georgia Capital is 100% owned by Georgia Capital PLC, which is listed on the London Stock Exchange.

On the other hand, LEAP was created in 2016 with a capital commitment of 1.5 billion dollars from the Japan International Cooperation Agency.

It focuses on delivering high-quality, sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide accessible and affordable healthcare, education, and communication services to ADB’s developing members.