ADB Invests GEL 41M in Georgia’s First Sustainability-Linked Bonds for Green Mobility

With ADB’s catalytic support, Tegeta successfully raised GEL 260 million (US$95.7 million) on the Tbilisi Stock Exchange, setting a powerful precedent for climate-aligned financing in the region.

The Asian Development Bank (ADB) has made a landmark GEL 41 million (US$15.2 million) investment as the anchor investor in Tegeta Holding’s sustainability-linked bonds (SLBs)—the first SLBs ever issued in Georgian lari (GEL). This breakthrough marks a major step forward for sustainable transport, capital market development, and green mobility in the South Caucasus.

With ADB’s catalytic support, Tegeta successfully raised GEL 260 million (US$95.7 million) on the Tbilisi Stock Exchange, setting a powerful precedent for climate-aligned financing in the region.

SLBs to Drive Low-Emission Transport and Stronger ESG Standards

Sustainability-linked bonds tie financial terms to the issuer's achievement of specific environmental or social performance targets. Under Tegeta’s SLB framework, the company commits to:

• expanding its low-emission and electric vehicle fleet

• modernizing transport services

• reducing carbon emissions across operations

• strengthening environmental, social, and governance (ESG) systems

Bond proceeds will fund clean transport projects primarily in Georgia and Armenia, advancing the shift toward greener logistics and mobility.

An independent assessment by Sustainalytics—funded by ADB—verified the bonds’ compliance with the International Capital Market Association (ICMA) SLB Principles.

ADB: Supporting Green Finance and Local Capital Market Growth

ADB Country Director for Georgia Lesley Bearman Lahm highlighted the importance of the investment:

“This transaction does more than advance green transport; by issuing in GEL, it plays a crucial role in deepening Georgia’s capital markets and sets a vital precedent for low-carbon-aligned investment across the Caucasus.”

This is the second major sustainable finance milestone between ADB and Tegeta, following their collaboration on Georgia’s first local-currency green bonds in 2023.

Tegeta: A Regional Leader in Sustainable Mobility

Tegeta CEO Ekaterine Kavtaradze called the issuance a transformative step:

“Issuing Georgia’s first SLB is a landmark moment for our company and the region. This innovative financing accelerates our transition to a green fleet and solidifies our leadership in sustainable transport.”

Tegeta has emerged as a pioneer in sustainable mobility, embedding ESG principles into its business model and driving industry modernization through:

• Georgia’s first local-currency green bonds (2023)

• Georgia’s first local-currency sustainability-linked bonds (2025)

• investments in clean fleets and innovative automotive services

Setting a Regional Benchmark for Low-Carbon Growth

The new SLBs represent a major leap for sustainable finance in the Caucasus region. By issuing in local currency, the bonds:

• reduce exchange-rate risk for domestic investors

• strengthen Georgia’s financial market resilience

• expand access to climate-aligned investment opportunities

• support long-term, local-currency financing for green projects

Together, Tegeta and ADB are establishing a robust model for responsible, future-ready mobility—one that aligns industry growth with climate action and regional sustainability ambitions.