Georgia : Georgian Green Bond Project

Nonsovereign Project | 54300-001

The transaction involves (i) a debt investment in bonds of 17,500,000; and (ii) the administration of a debt investment in bonds of $17,500,000 to be provided by Leading Asia's Private Infrastructure Fund; issued by Georgia Global Utilities (GGU), for the Georgian Green Bond Project. ADB''s proceeds will fund the maintenance and repairs of the existing water supply network and the installation of new water connections to end-users through a combination of new capex and debt refinancing.

Project Details

  • Project Officer
    Kim, Viktoriya
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Georgia
  • Sector
    • Water and other urban infrastructure and services
Project Name Georgian Green Bond Project
Project Number 54300-001
Borrower / Company Georgia Global Utilities JSC
Country / Economy Georgia
Location Nation-wide
Type or Modality of Assistance
7638 Debt Security Ordinary capital resources USD 20.00 million Committed
8382 Debt Security Leading Asia's Private Infrastructure Fund (LEAP) USD 17.50 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Water and other urban infrastructure and services / Urban water supply
Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Kim, Viktoriya
Project Sponsor(s)
Description The transaction involves (i) a debt investment in bonds of 17,500,000; and (ii) the administration of a debt investment in bonds of $17,500,000 to be provided by Leading Asia's Private Infrastructure Fund; issued by Georgia Global Utilities (GGU), for the Georgian Green Bond Project. ADB''s proceeds will fund the maintenance and repairs of the existing water supply network and the installation of new water connections to end-users through a combination of new capex and debt refinancing.
Objectives and Scope GGU issued up to $250 million of 5-year green bonds. ADB's proceeds of the issuance have been earmarked to finance capital expenditure to rehabilitate the water supply and sanitation system in Tbilisi and neighboring municipalities, and to refinance existing water-related debt. This is Georgia's first-ever green bond. ADB's subscription to the bond as an anchor investor supports the success of this first-of-a-kind issue in the South Caucasus region.
Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2030, which has a target of 75% of ADB operations to support climate change mitigation and adaptation by 2030. Tackling climate change and enhancing environmental sustainability are key operational priorities. ADB's support for the project is also in line with ADB's Country Partnership Strategy 2019-2023 for Georgia. Supporting the first green bond in Georgia will expand trade, create more jobs, and combat poverty through development of economic corridors in Georgia through the private sector. ADB seeks to create conditions for greater private sector participation in Georgia through private sector investment.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

GGU''s Environment and Social Management System (ESMS) was audited by an external third party in accordance with SPS requirements. It is considered that the institutional capacity and commitment of GGU, and its water utility subsidiary (GWP), to manage the project's social and environmental impacts are adequate.

The maintenance, rehabilitation, and repair of GWP''s existing water supply network as well as the installation of new water connections, will entail trenching of sections of the existing network, mostly along roads in urban Tbilisi and in the surrounding municipalities. The anticipated community and occupational health and safety, pollution, and traffic impacts related to these activities can be readily managed through the procedures detailed in GWP''s various EHS management plans. These management plans will be enhanced to ensure consistency with applicable national laws and regulations, as well as with ADB SPS requirements.
Involuntary Resettlement Under this Project, GGU is not undertaking any activities that will create physical or economic displacement as a result of involuntary resettlement. To ensure project activities avoid potential displacement impacts, GGU has incorporated screening and categorization processes for involuntary resettlement in line with Safeguard Requirement 2, ADB SPS allowing the Company to identify at an early stage what activities are permitted under the financing agreement.
Indigenous Peoples GGU is not undertaking any activities that will directly or indirectly affect the dignity, human rights, traditional socio-cultural beliefs and practices and livelihood systems of distinct and vulnerable ethnic minority groups or indigenous peoples. To ensure project activities avoid impacts on indigenous peoples GGU carries out screening and categorization processes in line with Safeguard Requirement 3, ADB SPS to ensure activities avoid such impacts.
Stakeholder Communication, Participation, and Consultation GGU has developed a stakeholder engagement plan (SEP) for its operations which will be enhanced and updated for ADB funded activities. The SEP includes a community grievance mechanism which is open to both customers and community members to use to raise concerns or complaints.
Timetable for assistance design, processing and implementation
Concept Clearance 23 Jun 2020
Credit Committee Meeting 14 Jul 2020
Approval 22 Jul 2020
Last PDS Update 16 Aug 2022

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Georgian Green Bond Project: FAST Report Faster Approach to Small Nonsovereign Transactions Jul 2020
Georgian Green Bond Project: Gender Action Plan Gender Action Plans Jul 2020
Georgian Water Project: Corporate Safeguards Audit Report Documents Produced Under Grant/Loans/TA Jul 2020
Georgian Green Bond Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 2020

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Georgian Green Bond Project: Environmental and Social Monitoring Report (2020) Environmental and Social Monitoring Reports Mar 2022

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.