ENERGO: EBRD invests $13.8mn in first green bond listed in Georgia

The European Bank for Reconstruction and Development (EBRD) invested $13.8mn in the first green bond listed and traded on the Georgian stock exchange, reports the bank.

 

The $80mn green secured bond offering by Georgian Renewable Power Operations (GRPO) is also the first corporate issuance of this size in the country.  

 

The notes are denominated in US dollars 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, International Finance Corporation, the EBRD, and the Asian Development Bank. 

 

The proceeds will be used to refinance the shareholder loan provided by JSC Georgia Capital (GCAP) for redeeming the renewable energy business’ portion of JSC Georgia Global Utilities' $250mn, 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 the sector.  

 

GRPO, a subsidiary of the London Stock Exchange listed GCAP, 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 MW.