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Georgian Green Bond Project: FAST Report

Faster Approach to Small Nonsovereign Transactions | July 2020

The transaction involves (i) a debt investment in green bonds of up to $20,000,000; and (ii) the administration of a debt investment in green bonds of up to $20,000,000 to be provided by the Leading Asia's Private Infrastructure Fund, 2 to be issued by Georgia Global Utilities JSC (GGU), for the Georgian Green Bond Project in Georgia. 

GGU will issue up to $250 million of 5-year green bonds with a bullet repayment that will be listed on the Euronext Dublin. The proceeds of the issuance will be used to finance capital expenditures to rehabilitate the water supply and sanitation system in Tbilisi and neighboring municipalities, and to refinance existing debt of renewable energy and water assets. The proceeds of the Asian Development Bank (ADB) and ADB-administered subscription will be earmarked up to $30 million for capital expenditures related to the water and sanitation assets of GGU, and up to $10 million for refinancing of a corporate loan that financed certain past capital expenditures in the water supply and sanitation business. This will be Georgia’s first-ever green bond issuance. The instrument is targeted to be issued during the last week of July 2020. ADB will subscribe to the bonds based on their being recognized as green bonds in compliance with the International Capital Market Association’s Green Bond Principles. ADB’s subscription to the bonds as an anchor investor will support the success of this first-of-a-kind issue in the South Caucasus region.

This report describes the terms and conditions of a project for consideration for approval by ADB under the Faster Approach to Small Nonsovereign Transactions (FAST) framework.

This document dated July 2020 is provided for the ADB project 54300-001 in Georgia.

Linked Documents

  1. Sector Overview
  2. Client Information [Withheld from Public Disclosure in accordance with the Access to Information Policy (para. 17.2)]
  3. Details of Implementation Arrangements [Withheld from Public Disclosure in accordance with the Access to Information Policy (para. 17.2)]
  4. Contribution to the ADB Results Framework
  5. Financial Analysis [Withheld from Public Disclosure in accordance with the Access to Information Policy (para. 17.4)]
  6. Economic Analysis [Withheld from Public Disclosure in accordance with the Access to Information Policy (para. 17.4)]
  7. Country Economic Indicators
  8. Summary Poverty Reduction and Social Strategy
  9. Environmental and Social Management System: Audit Findings and Details of Arrangement
  10. Gender Action Plan