TBILISI, GEORGIA (4 July 2023) — The Asian Development Bank (ADB) will invest 20 million lari (around $7.6 million) in Tegeta Motors Limited Liability Company’s (Tegeta) inaugural 2-year and 6-month lari-denominated green bond, the first-ever such issuance on the Georgian Stock Exchange. Proceeds will finance the deployment of zero-emission light, road, and non-road electric vehicles (EV), and an expansion of Georgia's EV charging network by 70 new stations.
“ADB is Asia and the Pacific’s climate bank, and this investment builds on our commitment to developing Georgia’s capital markets through our climate and gender bond issuance,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This is Georgia’s first local currency-denominated approved green bond, and we expect it to spur further green bond issuances in Georgia and throughout the South Caucasus."
Green bonds are innovative financial instruments that promote transparency and accountability to investors, particularly in local currency. The proceeds are used exclusively to finance or refinance, partially or fully, new or existing projects with environmental or climate-related benefits. Tegeta’s bond issuance is aligned with the International Capital Markets Association’s Green Bond Principles while Sustainalytics provided Second-Party Opinion on the credibility of the bond issued.
“Tegeta is dedicated to pioneering the issuance of lari-denominated green bonds to support Georgia’s efforts to reduce greenhouse gas emissions and transition toward a more sustainable transport sector,” said Tegeta Executive Director Vakhtang Kacharava. “This issuance reaffirms our commitment to environmental responsibility and sustainability, and actively contributes toward a climate-friendly future. We are thankful for ADB’s support and assistance and are looking forward to continued collaboration with ADB in climate-themed investments.”
The investment was funded through ADB’s issuance of the first supranational local currency green bond in the Georgian domestic market with a matching amount and tenor. The ADB bond was completed and certified under ADB’s Green and Blue Bond Framework, its issuance was arranged by TBC Capital, and it was issued and settled through the National Bank of Georgia’s Georgian Securities Settlement System.
Tegeta, established in 1995, is Georgia’s leading automotive products and services company with over 400,000 registered retail, 40,000 corporate, and 3,000 wholesaler clients through 28 service centers across the country.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.