Project detail - GEORGIA GLOBAL UTILITIES JSC

GEORGIA GLOBAL UTILITIES JSC

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Who is our client

Georgia Global Utilities JSC (“GGU” or “Company”) manages the renewable energy and water utility business of London-listed investment company Georgia Capital PLC (“Georgia Capital”). GGU through its subsidiaries operates 220MW of hydropower plants (“HPPs”) and owns the only operational (21MW) wind power plant (“WPP”) in the country. In addition, GGU fully owns FMO's previous client Georgian Water & Power LLC (“GWP”), the sole provider of water and wastewater services in the capital city of Georgia, Tbilisi.

Funding objective

GGU has successfully issued the very first Green Bond in Georgia, worth USD 250 million. The proceeds will be used to refinance all debt at GGU's subsidiaries and to invest in capex program for the water and waste water business.

Why we fund this project

FMO participates in this Green Bond issuance as one of the anchor investors, alongside other DFIs. With this bond issue, FMO supports long-standing FMO client Georgia Capital in accessing international capital markets, therefore (indirectly) catalyzing commercial investors.

Environmental and social rationale

The Notes are qualified as 100% Green. GGU will issue annually a sustainability report within either the (i) EU Non-Financial Reporting Directive or according to the (ii) Global Reporting Initiative (“GRI”). The environmental and social status of the relevant GGU activities was reviewed with the help of a qualified independent advisor, using the FMO Sustainability Criteria. The activities were found to include a B+ environmental and social risk category. The relevant IFC Performance Standards are 1,2,3,4,5,6 and 8. IFC PS 7 was found to be not applicable, as no impacts on Indigenous People or specific other vulnerable groups as referred to under PS7 were identified.

Website client
http://http:///www.gwp.ge
Region
Europe & Central Asia
Country
Georgia
Sector
Infrastructure, Manufacturing and Services
Signing date
7/23/2020
Total FMO financing
USD 65.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+