news - FMO participates as anchor investor in largest green bond in Georgia

FMO is proud to announce its participation as an anchor investor in the largest green bond in Georgia. Yesterday, 12 October 2022, Georgia Renewable Power Operations (GRPO), owning and operating 4 hydro power plants and the only wind farm in Georgia, successfully issued US$80 million green secured notes, expected to be listed on the Georgian Stock Exchange. FMO is participating with USD 30mln as key anchor investor.

GRPO is part of the Georgian Renewable Power Holding and one of the leading renewable energy platforms in Georgia, a client of FMO since 2004. The proceeds of the bonds will be used to refinance company’s existing debts and ensure successful implementation of GRPO’s medium-term strategy.

Nuka Mshvidobadze, Chief Financial Officer of GRPO commented: ‘I am extremely delighted to announce that GRPO has successfully issued US$80 million green secured notes. This is the first-ever green notes issuance and the largest corporate transaction on the Georgian capital market. I would like to express my gratitude to our long-term partner - FMO – for continuous support and for leading us in the transaction by acting as an anchor investor. Having FMO, a reputable International Financial Institution, on board enhances credibility of our debt instrument, and creates additional incentives for other developers to follow the same path of issuing sustainable and green instruments aimed towards development of the Georgian renewable energy sector.’

Geert Fijnaut, Manager Energy for Asia and Eastern Europe at FMO said: ‘We are very pleased to be part of this first-of-its-kind green notes issuance in Georgia, which will hopefully be a big boost for the Georgian capital market and pave the way for future sustainable and green bond instruments in the country. FMO teaming up with GRPO is a logical next step in the collaboration between our organization and Georgia Capital in the sustainable water and renewable energy space. During our partnerschip we have gotten to know the company and its operations very well and we are impressed by the level of professionalism and the pioneering spirit of its staff. We are confident that we will continue our cooperation in the coming years as FMO is geared up for further investments in support of Georgia moving towards a net zero future.’’

The US$-denominated 7.0% green secured bonds, with a 5-year bullet maturity, are expected to be settled on 12 October 2027. The bonds are being issued and sold at par value. GRPO obtained a Second Party Opinion from Sustainalytics, a leading provider of environmental, social and governance (ESG) research and analysis, for its Green Bond Framework.