Georgia Global Utilities announces issuance of $300 Million Green Bond...
GGU is the first company to reopen international debt capital markets
for Georgian companies since the onset of May-June 2024 volatility.
The fixed coupon rate for the bonds was set at 8.875%, with an issue
price at 100% of the nominal value, with a maturity of 5 years.
Investor interest, both foreign and Georgian, exceeded the issue
volume by approximately 60%.J.P. Morgan acted as the sole lead manager
and bookrunner for the transaction, with TBC Capital and Galt &
Taggart serving as co-managers. Legal advisors for J.P. Morgan and GGU
included Latham & Watkins, Baker & McKenzie LLP, BLC Law Office and
Dentons, while EY served as the auditor.GGU intends to allocate an
amount equal to the net proceeds to eligible projects within its
strategic green initiatives. The funds raised will be used to finance
new green capital investments and to refinance existing liabilities.
GGU has obtained a second party opinion from the leading ESG research
and analytics firm, DNV."I am pleased to announce the successful
issuance of GGU's second green bond. GGU was the first private company
in Georgia to issue green bonds in 2020. With this transaction we
continue to uphold our environmental responsibilities and maintain our
status as a leading sustainable company in Georgia.I would like to
express special thanks to our partners, international financial
institutions, for their support - the International Finance
Corporation (IFC), the European Bank for Reconstruction and
Development (EBRD), the Asian Development Bank (ADB) and the
Germany’s Development Finance Institution for the private sector,
subsidiary of KfW Group (DEG).The bond funds will be used to refinance
GGU's existing liabilities and to finance capital investments in the
water supply sector. This transaction will significantly improve the
company's financial profile and liquidity, helping us to develop a
healthy and sustainable business," said Jose Miguel Santos Gonzalez,
General Director of GGU."The size, price, and investor base of this
transaction are proof of GGU's strong financial position and great
growth potential. The company's securities have attracted considerable
interest from retail investors and international financial
organizations in both local and international markets. I am delighted
that Galt & Taggart played an active role in the successful completion
of such a remarkable transaction," said Ketevan Toidze, Deputy
Director of Galt & Taggart.“Congratulations to GGU on the successful
issuance of green bonds, which has attracted significant interest from
both international and local investors. We are pleased that TBC
Capital served as the co-managing investment bank for both the
company's first and second green Eurobond issuances. The issuance of
the second green bond in the international market underscores GGU's
long-term commitment to sustainable development. The financial
resources obtained from this bond issue will not only enhance the
company's financial standing but also support the execution of more
green initiatives and projects in the market," said Mary Chachanidze,
Managing Director of TBC Capital.According to Fitch Ratings, GGU holds
a BB- (Outlook Stable) rating, and S&P Global assigns a BB-
(CreditWatch Positive) rating.Georgia Global Utilities (GGU) manages
the water supply systems of Tbilisi, Mtskheta and Rustavi (GWP) and
energy facilities. GGU owns several hydro power plants with a total
installed capacity of 149 MW, including the Zhinvali hydro power plant
- the second largest with a reservoir in Georgia. Since 2022, 80% of
the company's shares are owned by the Spanish company FCC Aqualia, a
leading entity in the European water supply market, and 20% by the
investment holding company Georgia Capital.
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