In a bid to promote climate finance and capital market development in Georgia, the International Finance Corporation and the Asian Development Bank have invested in the country’s first green bond.
A subscription of $20 million in the $80 million issue was invested by the IFC, while $4 million was contributed by the AfDB to the bond issued by Georgian Renewable Power Operations – a subsidiary of Georgia Capital, a leading investment management company in the country. .
This is the largest domestic corporate bond offering in Georgia to date. IFC’s landmark transaction and flagship subscription is expected to help mitigate climate change by avoiding approximately 170,000 tonnes of CO2 emissions per year, the greenhouse gas equivalent of more than 33,000 vehicles,” said the IFC.
The announcement said the IFC investment would also help set a precedent, “by encouraging alignment with good governance,” environmental and social standards to develop more renewable energy projects in Georgia.
With Georgia’s first green bond issuance, IFC’s timely financing will help spur renewable energy development in the country. Given that Georgia’s corporate bond market is still nascent, we believe IFC’s support will help deepen the country’s debt capital market, create jobs, improve energy security, and spur economic growth. sustainable economic growth,” said Ivana Fernandes Duarte, IFC Regional Director for the South Caucasus. .
Meanwhile, senior investment specialist in the AfDB’s private sector operations department, David Urbaneja-Furelos, said the bank’s assistance would support the development of Georgia’s local capital market “through the first domestic greenback and the largest bond to be listed in the country”.
This investment builds on our track record as an anchor investor in Georgia’s past green bonds and shows how our involvement in these and other debt instruments can help our members achieve their climate goals.” he declared.
GRPO operates a portfolio of five renewable energy projects, including four hydroelectric power plants with a total installed capacity of 50.4 megawatts and Georgia’s only wind power plant. The company said it would use the new funds to support its ongoing operations.
