GEORGIA GLOBAL UTILITIES JSC
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
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.
What is our 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 do we fund this investment?
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.
What is the Environmental and Social categorization 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 customer/investment
- http://http:///www.gwp.ge
- Region
- Europe & Central Asia
- Country
- Georgia
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 7/23/2020
- End date
- 11/17/2022
- Total FMO financing
- USD 65.00 MLN
- Funding
- FMO NV
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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+