Georgian Water Firm Raises $300 Million Through Green Eurobond Issuance with EBRD Support

Georgian Water Firm Raises $300 Million Through Green Eurobond Issuance with EBRD Support

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has invested $40 million in Georgia Global Utilities’ (GGU) second green Eurobond issuance, which totals $300 million. This funding aims to improve Tbilisi’s water infrastructure. The issuance is also backed by DEG, the International Finance Corporation, and the Asian Development Bank, and aligns with the Green Bond Principles. It supports GGU’s financial stability and environmental goals, marking the first green bond under the EBRD’s Green Cities program. The EBRD is a key investor in Georgia, having invested over €5 billion in various sectors.

(PRESS RELEASE) LONDON, 26-Jul-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has invested $40 million in the second green Eurobond issuance by Georgia Global Utilities (GGU). This investment is part of a larger $300 million offering aimed at financing green projects, specifically to enhance the water-network infrastructure in Tbilisi, Georgia’s capital city.

The green Eurobond issuance received additional support from German development finance institution DEG, the International Finance Corporation, and the Asian Development Bank. Listed on the Euronext Dublin, the bond aligns with the Green Bond Principles set by the International Capital Market Association, supporting GGU’s development and its long-term financial and environmental goals. This issuance allows GGU, the region’s only private infrastructure firm to issue a green bond, to diversify its funding sources.

This initiative marks the first green bond issued under the EBRD’s Green Cities program, which has already backed eight projects in Tbilisi through the flagship Green City Action Plan. The current project aims to invest in the water sector, tackling significant environmental issues such as water losses.

As a major institutional investor in Georgia, the EBRD has committed over €5 billion in 299 projects across various sectors including financial, corporate, infrastructure, and energy, with 82 percent of these investments directed toward the private sector.

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SOURCE: EBRD