Tegeta Holding Issued Green Bonds worth 20 million GEL - the First Green Emission issued in the Georgian National Currency

• Tegeta is the first company in the history of the automotive industry in the region to issue green status bonds
• The Asian Development Bank is a major investor in green bonds
• The emission was supported by TBC Capital
• 20,000,000 GEL mobilized as a result of the emission will be used for the holding's green initiatives

The leader in the automotive industry, Tegeta Holding has successfully issued green bonds in the national currency on the Georgian capital market for the first time. Securities worth 20 million GEL have been issued, which is the largest transaction of green bonds denominated in GEL on the local stock market, and the first precedent for green bonds denominated in GEL. The price of the bonds is TIBR6m+3.5%.

Full repayment of the principal amount of the bonds is expected after 2.5 years, while the coupon interest rate will be paid semi-annually.

The investor for securities is the Asian Development Bank. The international financial institution will make a direct foreign investment in the holding. The amount mobilized as a result of the bond issue will be used in its entirety for green projects, which outlines Tegeta’s long-term interest in sustainable development.

Vakhtang Kacharava, Tegeta Holding’s Executive Director: "It’s not the first time that Tegeta has set a precedent in the auto industry. Our company was the first to issue green bonds in the automobile business in the region, and is the first in the Georgian capital market to issue green securities in the national currency.

“Issuing green bonds is tightly connected to our corporate social culture. Within the framework of the existing emission prospectus, the company undertakes the responsibility to further develop the ecological transport segment. This envisions the sale of diversified electric vehicles and the arrangement of relevant infrastructure to encourage wide consumption.

“The holding's green bonds were fully purchased by the Asian Development Bank, which indicates that the large financial institution considers Tegeta a reliable future partner.”

At the preparatory stage of the emission, Tegeta Holding elaborated a framework of green bonds, clearly expressing the company's position on creating an ecologically clean environment. Based on the framework document, Tegeta obtained a second-party opinion from Sustainalytics, the leading international ESG research and analytics provider. The framework document defines the obligations that the company has to fulfill within the timeframe provided by the prospectus:

• Import and sale of light, passenger and other types of electric transport;
• Establishing an extensive network of charging stations across the country (70 charging stations in total) to create an affordable electric ecosystem with relevant charging infrastructure, thereby making electric vehicle ownership easier.

With the aim of ensuring better transparency throughout the process, the holding will submit a report on the fulfillment of its obligations to the bond investor, the Asian Development Bank.

Suzanne Gaboury, ADB’s Private Sector Operations Department Director: “ADB is Asia and the Pacific’s climate bank, and this investment builds on our commitment to develop Georgia’s capital markets through our climate and gender bond issuance. This is Georgia’s first local currency-denominated approved green bond, and we expect it to spur further green bond issuances in Georgia and throughout the South Caucasus.”

Dentons is the legal advisor to the strategic investors. TBC Capital has been a partner and supporter of Tegeta Holding throughout the green bond transaction.

Meri Chachanidze, Managing Director of TBC Capital: “We are thrilled that, for the first time in the history of the region's automobile industry, green bonds were issued in the national currency with the support of TBC Capital. This is the third successful emission for Tegeta Holding and TBC Capital, and the 5th green bond emission for TBC Capital, underlining our and TBC Group’s contribution to and interest in sustainable development. The global emission of ESG and green bonds is growing rapidly. More and more investors are committing to increasing the proportion of green bonds in their portfolios. Therefore, it is important for Georgia and Georgian companies to be involved in this trend in order to attract both local and international investors to the instruments of the Georgian capital market."

Tegeta carried out its first successful emission in 2019, placing bonds worth 30 million GEL. A significant part of this was acquired by the European Bank for Reconstruction and Development.

At the end of last year, the company made the largest emission of local corporate bonds denominated in GEL for the first time in the history of Georgia, issuing bonds worth 150 million GEL.

A few months ago, the company placed securities equivalent to 25 million US dollars. Within the frames of the mentioned emission, Tegeta also offered bonds to physical persons.

About Tegeta Holding: The largest automotive company in the Caucasus and Central Asia, it offers its customers a full range automotive ecosystem, which includes light, truck and construction, as well as commercial, passenger and industrial transport. Tegeta operates 28 service centers throughout the country. The holding carries out international trade on four continents and exclusively represents prominent brands Porsche, Volvo, Toyota, and Mazda.

Partners of the holding in the direction of trucks and special equipment include such major brands as MAN and JCB. Tegeta is the largest importer of more than 300 world leading automobile brands in Georgia. Among them are Bridgestone, Michelin, Varta, Bosch, Shell, Motul, and Pirelli. Tegeta Holding, with up to 3000 employees, is one of the largest employers in Georgia today.