EBRD invests US$ 50 million in green bond in Georgia

The European Bank for Reconstruction and Development (EBRD) has invested US$ 50 million in the first green bond issued by Georgian Railway (GR), the state-owned national railway company of Georgia.

The bond has a total volume of US$ 500 million and a seven-year maturity. Priced on 10 June, subscribed to by local and international investors, with a settlement date of 17 June, the bond will be traded on the London Stock Exchange.

The proceeds will be used to refinance GR’s existing notes, which are maturing in 2022. An amount equal to the net proceeds of the bond will be used to finance or refinance selected green projects under a green bond framework, prepared by GR and aligned with the International Capital Market Association’s Green Bond Principles.

“This is a landmark deal for Georgian Railway and Georgia,” said Ekaterina Miroshnik, EBRD Director and Head of Infrastructure Eurasia. “The EBRD plans to scale up its green finance in the region to support countries and businesses in their transition to net-zero emissions.”

The EBRD is a leading institutional investor in Georgia. To date, the Bank has invested more than €4 billion in 262 projects in the financial, corporate, infrastructure and energy sectors, with 79 per cent of those investments in the private sector.

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Press release