BAKU, Azerbaijan, July 26. The Asian Development Bank (ADB) has invested $40 million in a bond issuance by Georgia Global Utilities JSC (GGU), TurkicWorld 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.
