Renewable Energy issues US$ 80 million green secured bonds on the local market

Georgia Capital PLC (the “Group” or “GCAP”) announces that Georgian Renewable Power Operations JSC (“GRPO”), the holding company of the Group’s operational renewable energy assets (previously owned by Georgia Global Utilities JSC (“GGU”)), successfully closed a US$ 80 million green secured bond offering (the “Notes”) on 12 October 2022. The Notes are US$-denominated with 5-year bullet maturity (callable after two years) and carry a 7.00% coupon. The bonds were issued and sold at par value. The proceeds of the Notes were fully used to refinance the shareholder loan from GCAP, provided for redeeming the renewable energy business’ portion of GGU's US$ 250,000,000 7.75% Eurobond in September 2022. The Notes are expected to be listed on the Georgian Stock Exchange.

GRPO obtained a Second Party Opinion from Sustainalytics, a leading provider of environmental, social and governance (“ESG”) research and analysis, for its Green Bond Framework. Galt and Taggart JSC and TBC Capital LLC acted as placement agents for the transaction. BLC Law Office and Dentons acted as legal advisors of the anchor investors, and EY LLC acted as the financial auditor of the issuer. The issuance was supported by long-standing partners of the business - the Dutch Development Bank/ Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), the Asian Development Bank (“ADB”), the International Finance Corporation (“IFC”), and the European Bank for Reconstruction and Development (“EBRD”). FMO, ADB, and IFC acted as anchor banks for the transaction.

Irakli Gilauri, Chairman and CEO of Georgia Capital commented: “I am delighted to announce that GRPO has successfully completed the largest ever corporate bond placement in Georgia. The issuance of the first-ever green secured bonds provides significant contribution to the development of the Georgian capital market. The transaction, completed during the current challenging market conditions, represents a milestone achievement for the business and once again demonstrates our superior access to capital. I would like to thank FMO, IFC, EBRD and ADB, our long-standing partners, for supporting us in this transaction.”