2024.08.07
On July 16th, the Asian Development Bank (ADB) announced an investment in green bonds (*) issuance by Georgia Global Utilities JSC (GGU) in Georgia using the "Leading Asia's Private Infrastructure Fund 2" (LEAP 2) funded by JICA.
LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from JICA. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable healthcare, education, and communication services to ADB’s developing member countries.
The ADB will utilize US$20 million from LEAP2, in addition to US$20 million from ADB’s ordinary capital resources (total contribution will be US $40 million).
The green bond will be used to modernize the water supply network in Tbilisi and neighboring municipalities in Georgia, thereby contributing to improve access to safe potable water for 1.4 million people, or 38% of Georgia's population, while also supporting the country’s adaptation to the adverse effects of climate change by improving energy efficiency in the water utilities.
Through the participation of ADB as an anchor investor, it is expected to mobilize other private investors diversify access to international capital markets by companies interested in climate change, thereby also contributing to the achievement of SDGs Goal 6 (Clean water and sanitation) and Goal 13 (Climate action).
(*) Green bond is a bond issued to raise funds specifically for environmental initiatives, such as global warming countermeasures and renewable energy.
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