2 93 11 11
26/07/2024 Georgia Global Utilities announces issuance of $300 Million Green Bonds
Georgia Global Utilities (GGU), a holding company managing water supply and energy facilities in Georgia, has successfully issued $300 million in green bonds, which are admitted to the Official List of Irish Stock Exchange plc, trading as Euronext Dublin (GEM).
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.
18/06/2024 ჯივიპის საგანგებო განცხადება - ჯივიპი მომხმარებლებს წყალს რეზერვუარების ალტერნატიული შევსებით მიაწვდის
17/06/2024 საგანგებო განცხადება - რა ვითარებაა წიწამურთან მდებარე მაგისტრალურ წყალსადენზე
07/06/2024 წყალმომარაგების სისტემის მოდერნიზაცია - Aqualia ჯივიპიში ევროპული სტანდარტების დანერგვას აგრძელებს
24/11/2023 Საოპერაციო ცენტრები წყალმომარაგების სერვისების მართვის ევროპული მოდელია - ხოსე მიგელ სანტოსი, gwp-ის გენერალური დირექტორი
24/11/2023 მნიშვნელოვნად გამარტივდება საოპერაციო პროცესები და შეამცირდება ავარიებზე რეაგირების დრო - ზურა ალფაიძე, gwp-ის ტექნიკური განვითარების და სისტემების დირექტორი
