EBRD invests US$ 13.8 million in first green bond listed in Georgia

By Rezo Bitsadze

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  • US$ 80 million corporate bond placement the largest ever in Georgia
  • Proceeds will be used to refinance GRPO’s shareholder loan from its parent company 
  • The first-ever green secured bond boosts the development of the Georgian capital market

The European Bank for Reconstruction and Development (EBRD) invested US$ 13.8 million in the first green bond listed and traded on the Georgian stock exchange. The US$ 80 million green secured bond offering by the Georgian Renewable Power Operations (GRPO) is also the first corporate issuance of this size in the country.  

The notes are US$-denominated with a 5-year bullet maturity and carry a 7% coupon. They were issued and sold at par value. The issuance was supported by the Dutch Entrepreneurial Development Bank (FMO), International Finance Corporation (IFC), the EBRD, and the Asian Development Bank (ADB)

The proceeds will be used to refinance the shareholder loan provided by JSC Georgia Capital (GCAP) for redeeming renewable energy business’ portion of JSC Georgia Global Utilities' US$ 250,000,000, 7.75% Eurobond issued in July 2020. The transaction will also diversify the GRPO’s funding sources.  

Through the investment, the GRPO is set to promote gender equality across the male-dominated energy sector and will implement outreach campaign to raise awareness of the importance of women’s participation in sector.  

GRPO, a subsidiary of the London Stock Exchange (LSE)-listed GCAP, is one of the leading renewable energy platforms in Georgia. The company operates four hydro power plants, and only wind power plant in Georgia with combined capacity of 71 Megawatts.  

The EBRD has invested almost €5 billion in Georgia to date through 274 projects, with more than 80 per cent of those in the private sector. The Bank’s key areas of investment include the financial sector, sustainable infrastructure, manufacturing and services, and small and medium-sized enterprises (SMEs). 

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