BAKU, Azerbaijan, December 19. The Asian Development Bank (ADB) has invested 41 million Georgian lari ($15.2 million) as an anchor investor in sustainability-linked bonds issued by Tegeta Holding, marking the first such bonds denominated in lari, Trend reports citing the bank.
ADB’s participation helped mobilise Tegeta’s bond issuance, which raised a total of 260 million lari (about $95.7 million) on the Tbilisi Stock Exchange, providing a boost to sustainable transport and green mobility in the South Caucasus.
Sustainability-linked bonds tie financial terms to the achievement of specific environmental or social targets. In Tegeta’s case, these include modernising and expanding its low-emission vehicle fleet and strengthening environmental, social and governance standards. Proceeds from the issuance will finance projects aimed at cutting carbon emissions and promoting cleaner transport, mainly in Georgia and Armenia.
ADB has supported Georgia since 2007 and is the country’s largest multilateral development partner. Its loans, grants and technical assistance to Georgia total about $5 billion, including around $1 billion directed to the private sector.
Under its current five-year country partnership strategy, ADB aims to help Georgia develop into a green and inclusive regional gateway, while supporting policy reforms, capacity building, resilient infrastructure, regional integration, and investments in both the public and private sectors.