Early Warning System

Countries

Georgia

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Sep 6, 2022

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

GEORGIAN RENEWABLE POWER OPERATIONS JSC

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Energy

The service or industry focus of the investment. A project can have several sectors.

Investment Amount (USD)

$ 13.80 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 80.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Primary Source

Original disclosure @ EBRD website

Updated in EWS Oct 19, 2023

Disclosed by Bank Oct 20, 2022

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank website, this project involves a:

USD 13.8 MM subscription in the USD 80 MM 5-year secured green bond (the "Bond"), to be listed on the Georgian Stock Exchange, issued by JSC Georgian Renewable Power Operations ("GRPO"), one of the leading renewable energy platforms in Georgia, which is 100% indirectly owned by JSC Georgia Capital, ("GCAP"), a holding company of a diversified group of businesses operating in healthcare, insurance, beverages, power & utilities and real estate in Georgia.

The Bond proceeds will be applied to refinancing the shareholder loan provided by GCAP for redemption of JSC Georgia Global Utilities' USD 250,000,000.00 7.75% Eurobond, which took place in September 2022.

This project is categorised as B (2019 ESP). As the project is a capital market transaction, Environmental and Social Due Diligence was carried out by review of publically available information, including the Green Bond Principals (GBP) Second Party Opinion (SPO), and disclosures made by the Issuer within MNPI rules. This approach is aligned with the EBRD's ESP and procedures for Capital Markets Transactions. Much of the ESDD had been completed under previous projects associated with the Issuer's underlying operational asset base and sufficient E&S information was available to EBRD to complete ESDD for the proposed transaction.

The Issuer's Green Bond Framework was subject to independent review and the resulting report confirms that the Framework is aligned with the Green Bond Principles, 2018. Furthermore, the report confirms that the categories for investment of Bond proceeds would advance the UN Sustainable Development Goals, specifically SDG 7. The Issuer will report the allocation of proceeds on its website on an annual basis until full allocation. The allocation reporting will include the total amount of proceeds allocated, the share of new financing and refinancing, the number of projects and level of certification, and the balance of unallocated proceeds. In addition, the Issuer plans to report on relevant ESG impact metrics which is aligned with good international practice.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

EBRD FINANCE SUMMARY

USD 13,800,000.00

TOTAL PROJECT COST

USD 80,000,000.00

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

CLIENT INFORMATION

GEORGIAN RENEWABLE POWER OPERATIONS JSC

GRPO is one of the leading renewable energy platforms in Georgia. The company operates four hydro power plants and the only wind power plant in Georgia with combined capacity of 71 Megawatts.

GRPO is 100% indirectly owned by GCAP, a holding company of diversified group of businesses operating in healthcare, insurance, beverages, power & utilities and real estate in Georgia.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Georgia Capital JSC	Parent Company	-

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Nuka Mshvidobadzenmshvidobadze@grpc.ge+995322931111www.grpc.geMedea Jugeli Street #10, 0179, Tbilisi, Georgia

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html