The Asian Development Bank (ADB) has invested 41 million Georgian lari ($15.2 million) as an anchor investor in Tegeta Holding’s sustainability-linked bonds—the first such bonds issued in local currency in Georgia, the bank announced. The investment marks a major step for sustainable transport and green mobility in the South Caucasus region. ADB’s support helped Tegeta raise 260 million lari (approximately $95.7 million) on the Tbilisi Stock Exchange through bonds that tie financial terms to meeting specific environmental or social goals.
For Tegeta, these targets include modernizing and expanding its low-emission vehicle fleet and improving its environmental, social, and governance standards. The proceeds will finance projects that cut carbon emissions and promote cleaner transport, primarily in Georgia and Armenia. Sustainability-linked bonds differ from green bonds in that they set performance targets rather than earmarking funds for specific green projects.
“We are delighted to deepen our partnership with Tegeta. After our successful collaboration on Georgia’s first local currency green bonds in 2023, we are proud to support another first: the country’s inaugural SLBs in GEL,” said Lesley Bearman Lahm, ADB Country Director for Georgia. “This transaction does more than advance green transport; by issuing in GEL, it plays a crucial role in deepening Georgia’s own capital markets and sets a vital precedent for low-carbon-aligned investment across the entire Caucasus region.” An independent review by Sustainalytics, funded under an ADB program, certified the bond issuance and verified Tegeta’s framework against the International Capital Markets Association’s sustainability-linked bond principles.
“Issuing Georgia’s first SLB is a landmark moment for our company and the region,” said Ekaterine Kavtaradze, Tegeta’s Chief Executive Officer. “This innovative financing accelerates our transition to a green fleet and solidifies our leadership in sustainable transport. We are grateful for ADB’s continued partnership and shared vision for a cleaner future.”
Tegeta is a pioneer in the Caucasus automotive industry, and broke new ground in sustainable finance by introducing Georgia’s first local-currency green bonds in 2023 and embedding environmental, social, and governance principles into its business model.
ADB has supported Georgia since 2007 and is the country’s largest multilateral development partner. The bank’s loans, grants, and technical assistance to Georgia total $5 billion, with about $1 billion allocated to the private sector. ADB’s five-year country partnership strategy with Georgia aims to help the country develop into a green and inclusive regional gateway while supporting sovereign and private sector investments, policy reforms, capacity building, resilient infrastructure, and regional integration.
