Leading global law firm Baker McKenzie has advised Georgia Global Utilities JSC, a portfolio company of Georgia Capital, on the issuance of US$250 million 7.75% covenanted guaranteed green bonds, due in 2025.

The deal represents the first green bond issuance out of Georgia with three international financial institutions, Asian Development Bank, German investment and development corporation DEG and Dutch bank FMO acting as anchor investors. The issuance will be used to refinance existing loan arrangements for green assets and to finance capital expenditure for Georgia’s water supply and sanitation requirements.

Megan Schellinger, partner in the Corporate Finance practice commented on the deal, “We are delighted to have advised Georgia Global Utilities on this very important, ground-breaking and high profile transaction. This deal showcases the ability of our global finance offering, bringing to the fore our green finance and High-Yield capabilities, in assisting our international clients with all their financing needs.”

Rob Mathews, partner in the Capital Markets practice said, “The transaction reflects Baker McKenzie's leadership position in emerging markets DCM, as deals attract more international interest and topics like ESG-compliance, covenanted Eurobond protections and structural flexibility become more prevalent. The deal represents the latest example of our full service capital markets offering, which recently included advising on VEON’s issuance of RUS 20 billion 6.3% senior notes.”

J.P. Morgan was Sole Bookrunner, Green Structuring Agent and Development Finance Structuring Agent and TBC Capital was Co-Manager, with Freshfields providing counsel to both JP Morgan and TBC Capital. BLC acted as local legal counsel to Georgia Global Utilities JSC, and Dentons acted as local legal counsel to JP Morgan and TBC Capital.

The Baker McKenzie team was led by partners Roy Pearce, Megan Schellinger and Rob Mathews, supported by senior associates Maxim Khrapov and Samantha Greer and associate Luke Hackett (all London).

The deal was closed in July 2020.

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