BAKU, Azerbaijan, July 26. The Asian
Development Bank (ADB) has invested $40 million in a bond issuance
by Georgia Global Utilities JSC (GGU), Trend reports via the
ADB.
This certified green bond, the largest ever issued by a private
corporate entity in Georgia, aims to enhance the water system in
Tbilisi and neighboring municipalities, building resilience against
climate change impacts on surface and groundwater resources.
The financing package includes $20 million from ADB’s ordinary
capital resources and another $20 million from the Leading Asia’s
Private Sector Infrastructure Fund 2 (LEAP 2), administered by ADB
on behalf of the Japan International Cooperation Agency (JICA).
This investment is part of a $300 million, 5-year issuance by GGU.
The funds will modernize the water supply network in and around
Tbilisi, ensuring a potable water supply for approximately 1.4
million residents. The German development finance institution DEG,
the European Bank for Reconstruction and Development, and the
International Finance Corporation are also participating in the
bond issuance.
Since 2011, ADB has invested over $800 million in Georgia’s
water sector, contributing significantly to the country’s
resilience to climate change. GGU is owned by Aqualia Georgia LLC
and Georgia Capital JSC (GCAP), one of the country’s largest and
most diversified investment companies. Aqualia Georgia LLC is a
subsidiary of the leading Spanish water company FCC Aqualia S.A.,
which operates in 18 countries.
LEAP 2, an ADB-managed fund with a $1.5 billion commitment from
JICA, focuses on sustainable private sector infrastructure projects
that reduce carbon emissions, improve energy efficiency, and
provide affordable healthcare, education, and communication
services to ADB’s developing member countries. The LEAP 2
investment in GGU’s bond issuance is its second transaction since
the fund’s replenishment in December 2023.
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