ADB Makes $4 Million Investment in Georgia's First Locally Listed Green Bond

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by KnowESG
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ADB invested $4 million in a green bond issued by Georgian Renewable Power Operations (GRPO), which would use the money to support its continued operations. The investment will also give GRPO's parent company, Georgian Renewable Power Company Group JSC, more money to help it grow its business in renewable energy.

ADB's investment is part of GRPO's $80 million sale of a 5-year green bond. This is the first green bond to be listed on the Georgian Stock Exchange and the largest bond to be listed there. Leading Asia's Private Infrastructure Fund (LEAP) will put $4 million into the bond, and ADB will administer that.

ADB Private Sector Operations Department Senior Investment Specialist David Urbaneja-Furelos said: 

"ADB’s assistance will support the 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.”

Georgia Capital Chairman and Chief Executive Officer Irakli Gilauri said: 

"I am delighted to announce that GRPO successfully issued an $80 million green bond. The transaction met with considerable interest from investors, being able to access capital even during the current unprecedented times. We are thankful to ADB for playing a key role as one of the strategic investors in the note."

GRPO is in charge of five renewable energy projects, such as Georgia's only wind power facility and four hydropower plants with a total installed capacity of 50,4 megawatts. ADB participated in a green bond issued by GRPO's predecessor firm, Georgia Global Utilities JSC, in 2020.

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

The Japan International Cooperation Agency committed $1.5 billion in capital to LEAP in 2016. Its main goal is to create high-quality, long-term infrastructure projects in the private sector that reduce carbon emissions, improve energy efficiency, and make it easy for ADB's developing members to get affordable health care, education, and communication services.

ADB is committed to making Asia and the Pacific a place that is prosperous, inclusive, resilient, and sustainable, while still working to end extreme poverty.

Source: ADB

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