Basisbank has successfully issued a 3-year Sustainability Bond amounting USD 20 million, marking the first Sustainability Bond Issuance in Georgia by a commercial bank, as well as the first public issue by a commercial bank on the market. The bond is denominated in USD, with a tenor of 3 years and a fixed interest rate of 7%.
The placement took place on August 7th and was the first tranche of the Bonds. Second tranche of USD 10 million is scheduled within one year from the first issue.
The Asian Development Bank (ADB), participated as an anchor investor in the transaction and subscribed to USD 15 million. The rest of the bonds were subscribed by various private investors. Due to strong demand for the bonds, there was a 30% oversubscription, which reflects Basisbank's solid financial standing, promising market outlook and established trust with investors.
According to the Sustainability Bond Framework prepared by Basisbank, the proceeds from the bonds shall be fully used to finance green and social projects such as: green buildings and construction, energy efficiency, renewable energy, green transportation, healthcare, education and access to finance.
“Basisbank is proud to be the first financial institution in Georgia to issue a public bond and also to issue a Sustainable Bond. This landmark transaction exemplifies our shared commitment with our strategic partner ADB to facilitate sustainable development in Georgia. Basisbank aspires to become a leader in sustainable finance, by leveraging banking practices to develop innovative products and services. By supporting businesses that prioritize environmental and social considerations, we aim to contribute to a more sustainable financial market and country. We extend our sincere gratitude to all partners and employees, who contributed to the successful placement of these bonds”, - David Tsaava, General Director of Basisbank remarked.
“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.”
"We are pleased to see the continued growth of the environmental and social bond market in Georgia. The issuance of sustainable bonds by Basisbank marks a significant step forward in this direction. We believe it is crucial to allocate capital to projects that contribute to the advancement of a sustainable and inclusive economy, and this transaction is an excellent example of that commitment. We congratulate Basisbank on their successful market transaction and look forward to many more environmental and social-themed transactions in the capital market", - said Ketevan Toidze, Deputy Director of Galt & Taggart.
"I am delighted that the first public sustainable bonds were successfully placed on the local market by a commercial bank with our support. The financial resources raised through these bonds will enable Basisbank to both foster the development of the capital market and finance green and social projects. It is worth noting, that an increasing number of companies are enhancing their portfolios with green bonds and making environmentally beneficial investment decisions. TBC Capital’s support for Basisbank’s first sustainable bond placement highlights our ongoing commitment to and interest in ESG initiatives", - remarked Mary Chachanidze, Director of TBC Capital
