Georgian Renewable Power Operations - Green Bond



Project number:


Business sector:


Notice type:


Approval date:

06 Sep 2022



PSD disclosed:

20 Oct 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

USD 13.8 MM subscription in the USD 80 MM 5-year secured green bond (the "Bond"), to be listed on the Georgian Stock Exchange, issued by JSC Georgian Renewable Power Operations ("GRPO"), one of the leading renewable energy platforms in Georgia, which is 100% indirectly owned by JSC Georgia Capital, ("GCAP"), a holding company of a diversified group of businesses operating in healthcare, insurance, beverages, power & utilities and real estate in Georgia.

The project is the first green bond to be issued on the Georgian Stock Exchange.

Project Objectives

The Bond proceeds will be applied to refinancing the shareholder loan provided by GCAP for redemption of JSC Georgia Global Utilities' USD 250,000,000.00 7.75% Eurobond, which took place in September 2022.

Transition Impact

ETI score: 61

The Transition Impact arises from the Green and Resilient qualities:

Green: The expected transition impact is derived from introducing a capital market instrument that is novel on the Georgian market - a green bond with an independent third party verification. 

Resilient: The Bond is the first corporate issuance of an instrument of this size on the local capital market.

Client Information


GRPO is one of the leading renewable energy platforms in Georgia. The company operates four hydro power plants and the only wind power plant in Georgia with combined capacity of 71 Megawatts. 

GRPO is 100% indirectly owned by GCAP, a holding company of diversified group of businesses operating in healthcare, insurance, beverages, power & utilities and real estate in Georgia.

EBRD Finance Summary

USD 13,800,000.00

Total Project Cost

USD 80,000,000.00


The Bank's additionality derives from supporting the Company's access to the local capital markets in the context of uncertain market conditions. 

The transaction is Gender Additional through GRPO's planned implementation of an outreach campaign to raise awareness of the importance of women's participation in the energy sector.

Environmental and Social Summary

Categorised B (2019 ESP). As the project is a capital market transaction, Environmental and Social Due Diligence was carried out by review of publically available information, including the Green Bond Principals (GBP) Second Party Opinion (SPO), and disclosures made by the Issuer within MNPI rules. This approach is aligned with the EBRD's ESP and procedures for Capital Markets Transactions. Much of the ESDD had been completed under previous projects associated with the Issuer's underlying operational asset base and sufficient E&S information was available to EBRD to complete ESDD for the proposed transaction.


The Issuer's Green Bond Framework was subject to independent review and the resulting report confirms that the Framework is aligned with the Green Bond Principles, 2018.  Furthermore, the report confirms that the categories for investment of Bond proceeds would advance the UN Sustainable Development Goals, specifically SDG 7. The Issuer will report the allocation of proceeds on its website on an annual basis until full allocation. The allocation reporting will include the total amount of proceeds allocated, the share of new financing and refinancing, the number of projects and level of certification, and the balance of unallocated proceeds. In addition, the Issuer plans to report on relevant ESG impact metrics which is aligned with good international practice.


The Issuer's asset base is known to EBRD and all of the sub-projects were structured to meet EBRD's requirements; Mestiachala 2 and Kasleti 2 HPPs are located in Svaneti region which presents a number of social sensitivities, however, both assets have been operational for some time and no new impacts will occur as a result of this transaction; Akhmeta HPP and Qartli WPP are considered to be examples of good international practice in the HPP and WPP sectors and reporting and supervision of these projects has been good; and Debeda HPP is a small run-of-river HPP that has been in operation since 2015 and no new issues associated with this facility are anticipated as a result of this transaction. EBRD will continue to monitor the operating performance of the assets as part of this Bond participation.


Technical Cooperation and Grant Financing


Company Contact Information

Nuka Mshvidobadze
Medea Jugeli Street #10, 0179, Tbilisi, Georgia

PSD last updated

20 Oct 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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