The Asian Development Bank (ADB) has committed $15 million as an anchor investor in a three-year sustainability bond issuance by Joint Stock Company BasisBank. This bond marks the first certified sustainability bond issued by a commercial bank on the Georgian Stock Exchange and will fund green and social projects.
ADB’s investment forms part of BasisBank’s $20 million bond issuance, with the remainder funded by private investors. The bond adheres to a sustainability bond framework following the International Capital Market Association’s Sustainability Bond Guidelines and has been validated by Det Norske Veritas. The issuance was organised by TBC Capital and Galt and Taggart.
Sustainability bonds aim to support projects that offer both environmental and social benefits, blending the principles of green bonds (for environmental projects) and social bonds (for 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. 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,” said ADB Private Sector Director General Suzanne Gaboury.
Georgia has recently updated its nationally determined contributions under the Paris Agreement, committing to reduce greenhouse gas emissions by 35% below 1990 levels by 2030. The country’s central bank requires banks to apply the Sustainable Finance Taxonomy to report on environmental and social activities.
“BasisBank is and has always been a strong supporter of sustainable financing,” said BasisBank’s Chief Executive Officer David Tsaava, adding, “This transaction demonstrates that ADB and BasisBank share a commitment to the sustainable development of Georgia.”