ADB Invests $40 Million in Georgia’s Largest Green Bond Issuance

The funds from this bond issuance will modernize the water supply network in and around Tbilisi, providing a reliable potable water supply for approximately 1.4 million residents.

The Asian Development Bank (ADB) has committed $40 million to a landmark green bond issuance by Georgia Global Utilities JSC (GGU), marking the largest green bond ever issued by a Georgian private company. This certified green bond aims to enhance the water infrastructure in Tbilisi and surrounding municipalities, improving resilience against climate change impacts on surface and groundwater resources.

The financing includes $20 million from ADB's ordinary capital resources and an additional $20 million from Leading Asia's Private Sector Infrastructure Fund 2 (LEAP 2), managed by ADB on behalf of the Japan International Cooperation Agency (JICA). This investment is part of a $300 million, five-year bond issuance by GGU, with contributions from the German development finance institution DEG, the European Bank for Reconstruction and Development, and the International Finance Corporation.

"ADB's anchor investment in GGU's green bond will boost international confidence in Georgia's capital market and enhance the country's climate resilience," stated Suzanne Gaboury, ADB Director General for Private Sector Operations. "This investment represents the start of a new partnership with FCC Aqualia and strengthens our relationship with Georgia Capital. ADB is dedicated to supporting developing countries in mobilizing domestic and international private capital for impactful development projects."

The funds from this bond issuance will modernize the water supply network in and around Tbilisi, providing a reliable potable water supply for approximately 1.4 million residents. Certified by Det Norske Veritas and compliant with the International Capital Markets Association's Green Bond Principles, this green bond will finance projects that support climate goals.

FCC Aqualia S.A. Chief Financial Officer Isidoro Marbán highlighted the significance of the green bond issuance: "GGU's green bond aims to finance critical investments that will improve Georgians' access to safe and reliable water while supporting the country's adaptation to climate change. This landmark transaction promotes sustainable financial instruments and standards in Georgia and the Caucasus region. We appreciate ADB's support and look forward to further collaboration on climate investments."

Since 2011, ADB has invested over $800 million in Georgia's water sector, contributing significantly to the country's climate resilience. GGU is owned by Aqualia Georgia LLC and Georgia Capital JSC (GCAP), with Aqualia Georgia LLC being a subsidiary of FCC Aqualia S.A., a leading Spanish water company operating in 18 countries.

LEAP 2, a $1.5 billion fund managed by ADB and funded by JICA, focuses on sustainable private sector infrastructure projects that reduce carbon emissions, enhance energy efficiency, and improve access to essential services. The investment in GGU's green bond is LEAP 2's second transaction since its replenishment in December 2023.