GGU, with the help of TBC Capital, places US$ 250 million International Green Bonds

28 Jul, 2020

The holding company of the investment company Georgia Capital – Georgia Global Utilities – (managing water supply and discharge and energy assets), has placed US$ 250 million international green bonds on the Irish Stock Exchange. These are the first-ever green notes issued from Georgia.

The bonds are 7.75% green notes, with a 5 year maturity rated B+ (stable) by Fitch and B (positive) by S&P. The Notes will be issued and sold at par value. The proceeds of the Notes will be used to refinance all existing loan arrangements of GGU and to finance capital expenditures in the water supply and sanitation business.

J.P. Morgan acts as a leading agent of the Notes and TBC Capital - as Co-Manager. Freshfields Bruckhaus Deringer LLP and Baker & McKenzie LLP act as legal advisors to J.P. Morgan and GGU, respectively. The issuance was supported by the international financial institutions: Deutsche Investitions und Entwicklungsgesellschaft mbH ("DEG"), the Netherlands Development Finance Company ("FMO") and the Asian Development Bank (“ADB”).

“I am delighted to announce that GGU has successfully issued the first-ever green notes from Georgia. The transaction was met with considerable interest from investors. The issuance of the bonds significantly improves the financial flexibility of GGU and also enhances its liquidity profile, contributing to the healthy growth of the business. I would like to express my gratitude and appreciation to our long-standing international partners - Deutsche Investitions und Entwicklungsgesellschaft mbH ("DEG") and the Netherlands Development Finance Company ("FMO") to become our main investors together with the Asian Development Bank (“ADB”). I would also congratulate the whole team of GGU with the success”, - said Irakli Gilauri, Georgia Capital CEO.

This is the forth issuance of EUR bonds by TBC Capital in the last 2 years

„We are glad that one more issuance of EUR Bonds was carried out from Georgia, especially during current difficulties and challenges. The transaction has been followed by positive feedback and the great interest from TBC Capital investors, driving their demand. It is remarkable that TBC Capital has been actively involved in the placement of EUR bonds from Georgia, being one of the main sources of attracting foreign capital to the country”, - said Vakhtang Butskhrikidze, TBC Bank CEO.

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