ADB Invests $15M in BasisBank's First Certified Sustainability Bond in Georgia

ADB’s investment forms part of BasisBank’s $20 million bond issuance, with the remainder sourced from private investors.

The Asian Development Bank (ADB) has invested $15 million as an anchor investor in Joint Stock Company BasisBank's inaugural 3-year sustainability bond issuance. This landmark bond, which represents the first certified sustainability bond issued by a commercial bank on the Georgian Stock Exchange, will support green and social sector projects.

ADB’s investment forms part of BasisBank’s $20 million bond issuance, with the remainder sourced from private investors. The bond adheres to a sustainability bond framework outlined by the International Capital Market Association’s Sustainability Bond Guidelines and has been validated by Det Norske Veritas. The issuance was facilitated by TBC Capital and Galt and Taggart.

Sustainability bonds are designed to fund projects delivering both environmental and social benefits. They combine the principles of green bonds, which finance environmental initiatives, with social bonds, which support projects addressing social issues.

“Sustainability bonds are crucial for bridging financing gaps and achieving sustainable, inclusive growth while promoting effective capital management in the private sector,” said ADB Private Sector Director General Suzanne Gaboury. “This pioneering issuance will enhance Georgia’s capital market by increasing awareness of thematic bonds that meet international standards and fund impactful green and social projects.”

Georgia has recently updated its nationally determined contributions under the Paris Agreement, committing to a 35% reduction in greenhouse gas emissions from 1990 levels by 2030. In alignment with this, the country's central bank has mandated banks to apply the Sustainable Finance Taxonomy to report on their environmental and social activities, underscoring the government's focus on climate finance across all economic sectors.

“BasisBank has consistently supported sustainable financing initiatives,” said BasisBank Chief Executive Officer David Tsaava. “This transaction highlights our shared commitment with ADB to advancing Georgia’s sustainable development.”

As Georgia’s fourth-largest bank, BasisBank is a key player in small and medium enterprise financing, managing a loan portfolio of 2,684 million lari through 39 branches and serving approximately 200,000 customers across the country.