ADB to invest up to $40 million to upgrade water, sanitation in Georgia

The Asian Development Bank (ADB) announced an investment of up to $20 million in green bonds to be issued by Georgia Global Utilities JSC (GGU), with proceeds to upgrade water supply and sanitation in Tbilisi and nearby municipalities and to refinance the debt of renewable energy and water operations. 

The investments form part of a $250 million issue by GGU of 5-year green bonds—Georgia’s first green bond issuance—that will be listed on the Global Exchange Market of the Irish Stock Exchange. GGU is a holding company with two major business lines involving renewable energy and water supply and sanitation, the latter operated primarily through its subsidiary Georgian Water and Power LLC—the largest privately-owned utility company in Georgia, serving around 1.4 million customers.

“ADB’s assistance will help ensure that communities in and around Tbilisi are supplied with water 24 hours per day and that water supply and sanitation systems in those urban centers function properly,” said Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty. “ADB’s anchor investment will demonstrate to potential investors the compelling investment opportunities in financing water and clean energy initiatives in Georgia’s private sector.”

A substantial part of ADB’s subscription will be earmarked for capital expenditure in connection with GGU ’s water supply and sanitation business in Georgia, providing the company with short and medium-term capital to upgrade the water and sanitation network and supply sustainable and affordable water to consumers.

Original source: ADB
Published on 27 July 2020