EBRD invests $40 million in Georgia Global Utilities’ green Eurobond
The European Bank for Reconstruction and Development (EBRD) announced that it has successfully participated in Georgia Global Utilities’ (GGU) second green Eurobond issuance.
EBRD’s participation entailed $40 million of the total US $300 million offering. GGU will receive the funds, which will be diverted and invested in improving the water network infrastructure in Georgia’s capital city, Tbilisi.
According to the announcement, the green Eurobond issuance was also backed by the German development finance institution DEG, the International Finance Corporation, and the Asian Development Bank.
The green Eurobond, listed on Euronext Dublin and adhering to the International Capital Market Association’s Green Bond Principles, will boost GGU’s development and long-term financial stability while supporting its environmental goals.
This issuance will also allow the company to diversify its funding sources. GGU is the sole private infrastructure firm in the region to have issued a green bond.
Also read: EIB and IDB partner on $300 million guarantee to advance Barbados’ climate resilience projects
This project marks the first green bond issued under the EBRD Green Cities program, which has previously backed eight initiatives in Tbilisi through the Green City Action Plan.
The bond will focus on investments in the water sector and tackle critical environmental issues, including water losses.
The EBRD is a major institutional investor in Georgia, having invested over €5 billion across 299 projects in the financial, corporate, infrastructure, and energy sectors, with 82% of these investments in the private sector.
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