The Asian Development Bank (ADB) has made a strategic investment in BasisBank’s USD 20 million issuance of a green bond in Georgia, marking a significant step forward for sustainable finance in the region. The USD 15 million investment by ADB is part of BasisBank’s broader USD 30 million green bond issuance, which aims to finance projects that contribute to environmental sustainability across the country.
Georgia’s BasisBank Green Bond: Financial Details
BasisBank’s $20 million green bond is Georgia’s latest foray into the international green finance market. Basisbank successfully issued and placed the 3-year Sustainability Bond of USD 20 million, marking the first Sustainability Bond Issuance in Georgia by a commercial bank, as well as the first public issue by a commercial bank on the market. The bond is denominated in USD, with a tenor of 3 years and a fixed interest rate of 7%.
The placement took place on August 7th and was the first tranche of the Bonds. Second tranche of USD 10 million is scheduled within one year from the first issue.
The Asian Development Bank (ADB), participated as an anchor investor in the transaction and subscribed to USD 15 million. The rest of the bonds were subscribed by various private investors. Due to strong demand for the bonds, there was a 30% oversubscription.The bond, which is listed on the London Stock Exchange, is specifically designed to fund projects that focus on green buildings and construction, energy efficiency, renewable energy, green transportation, healthcare, education and access to finance. This bond issuance is a milestone for BasisBank, reflecting its commitment to aligning with global sustainability goals.
Georgia’s BasisBank Green Bond: Strategic Importance
ADB’s investment in BasisBank’s green bond is a significant endorsement of Georgia’s efforts to build a sustainable financial ecosystem. This bond issuance is expected to play a crucial role in financing Georgia’s green projects, including the expansion of renewable energy infrastructure and improvements in energy efficiency.
One of the key areas where the bond proceeds will be utilized is in the development of Georgia’s renewable energy sector. With substantial potential in hydroelectric and wind power, Georgia is well-positioned to become a leader in green energy in the region. Part of the funds will be directed toward new hydroelectric projects and the modernization of existing infrastructure, helping to reduce the country’s reliance on fossil fuels.
Georgia’s BasisBank Green Bond: Market Impact
BasisBank’s green bond issuance, supported by ADB, sets a precedent for other financial institutions in Georgia and the broader Caucasus region. The bond not only provides critical funding for green projects but also serves as a benchmark for future sustainable finance initiatives. ADB’s involvement is likely to boost investor confidence, attracting more capital to Georgia’s burgeoning green finance market.
For BasisBank, this green bond represents a strategic move to diversify its funding sources while contributing to the country’s environmental goals. The success of this bond issuance could pave the way for additional green bonds in the future, further integrating sustainability into Georgia’s financial landscape.
Conclusion
ADB’s $15 million investment in BasisBank’s green bond is a landmark development for sustainable finance in Georgia. By providing essential funding for green projects, this bond issuance supports Georgia’s transition to a more sustainable economy and positions the country as a leader in green finance in the region. With the backing of a major institution like ADB, BasisBank’s green bond is well-placed to succeed, offering both financial returns and environmental benefits.
Newswire:
First time in Georgia – Basisbank`s Sustainability Bond for Financing Green and Social Projects
