The Asian Development Bank (ADB) has invested $15 million as an anchor investor in a 3-year sustainability bond issuance by Joint Stock Company BasisBank (BasisBank). The bond is the first certified sustainability bond issued by a commercial bank in the Georgian Stock Exchange and will finance green and social sector projects.
ADB’s investment accounts for part of BasisBank’s $20 million bond issuance, with the rest sourced from private investors. The bond complies with a sustainability bond framework under the International Capital Market Association’s Sustainability Bond Guidelines and validated by Det Norske Veritas. The issue was arranged by TBC Capital and Galt and Taggart.
Sustainability bonds are designed to finance projects that provide environmental and social benefits, combining the principles of green bonds which finance environmental projects, and social bonds which finance projects addressing social issues.
“Sustainability bonds help bridge financing gaps and achieve their sustainable and inclusive growth goals while supporting sound capital management by the private sector,” said ADB Private Sector Director General Suzanne Gaboury. “This pioneering transaction will deepen Georgia’s capital market by increasing awareness of thematic bonds that adhere to international standards while funding green and social projects.”
Georgia recently updated its nationally determined contributions as part of the Paris Agreement. The country has committed to reducing its greenhouse gas emissions to 35% below its 1990 baseline level by 2030. Georgia’s central bank has mandated banks to apply the Sustainable Finance Taxonomy to report on their environmental and social activities. Climate change finance through financial institutions is a priority for the government across all sectors of the economy.
“BasisBank is and has always been a strong supporter of sustainable financing,” said BasisBank’s Chief Executive Officer David Tsaava. “This transaction demonstrates that ADB and BasisBank share a commitment to the sustainable development of Georgia.”
BasisBank is the fourth-largest bank in Georgia and a leader in small and medium enterprise financing. It manages a loan portfolio of 2,684 million lari and operates through 39 branches serving around 200,000 customers across Georgia.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
