The Asian Development Bank (ADB) has committed USD 40 million to the green bonds issued by JSC Georgia Global Utilities (GGU).
These bonds, the largest issued by a private corporation in Georgia, aim to enhance the water systems in Tbilisi and its neighboring municipalities and bolster the resilience of surface and underground water resources against climate change.
The investment includes a $20 million debt investment drawn from ADB’s own funds and another $20 million invested by Asia’s Private Sector Infrastructure Lead Fund 2 (LEAP 2), which is managed in partnership with ADB's Japan International Cooperation Agency (JICA). This is part of a broader five-year, $300 million bond issuance by GGU intended for upgrading the water supply network that serves approximately 1.4 million residents in and around Tbilisi. Other participants in the bond issue include the German Investment Corporation, the European Bank for Reconstruction and Development, and the International Finance Corporation.
Susan Gaburi, ADB's Director General of Private Sector Operations, remarked, “ADB’s lead investment in GGU’s Green Bonds will boost international confidence in Georgia’s capital market and enhance the country’s climate resilience. This marks the beginning of a new collaboration with FCC Aqualia and will strengthen our ties with JSC Georgian Capital. Our goal is to support the mobilization of both domestic and international private capital in developing member countries to finance viable and impactful development projects.”
Since 2019, ADB has spearheaded the development of the environmental, social, and governance (ESG) bond market in Georgia. It has been instrumental in facilitating significant transactions, including the issuance of the first and largest green, gender, and sustainability bonds in both US dollars and local currencies. GGU’s green bond, certified by Det Norske Veritas, adheres to the Capital Markets Association’s Green Bond Principles, which are aimed at financing projects that support climate objectives.
FCC Aqualia S.A.’s Financial Director, Isidoro Marban, commented, “The objective of GGU’s green bond is to fund substantial investments that will enhance access to clean drinking water across Georgia and assist the nation in adapting to the adverse effects of climate change. This transaction underscores the growing importance of sustainable financial instruments and standards in Georgia and the Caucasus. We are thankful for ADB’s support and anticipate continued partnership in climate-focused investments.”
Since 2011, ADB has invested $800 million in Georgia’s water sector, significantly contributing to the nation’s climate resilience. GGU is owned by Aqualia Georgia LLC and Georgian Capital JSC, one of Georgia’s largest and most diverse investment entities. Aqualia Georgia LLC is a subsidiary of the leading Spanish water company FCC Aqualia S.A., which operates in 18 countries.
LEAP 2, managed by ADB and funded by JICA with $1.5 billion, aims to promote sustainable private-sector infrastructure projects across the Bank's developing member countries. These projects focus on reducing carbon emissions, enhancing energy efficiency, and expanding access to health, education, and communication services. LEAP 2's investment in GGU's bonds marks its second engagement since the fund's financial resources were replenished in December 2023.
Founded in 1966, ADB's mission is to foster comprehensive, multilateral, sustainable development in the Asia-Pacific region, while striving to eradicate extreme poverty. The organization comprises 68 member countries, including 49 from within the Asian region.
