ADB Invests In Georgia’s First Sustainability-Linked Lari Bonds To Support Tegeta’s Sustainable Transport – EQ
In Short : The Asian Development Bank (ADB) has invested 41 million Georgian lari as an anchor investor in Georgia’s first sustainability-linked lari bonds issued by Tegeta Holding. Listed on the Tbilisi Stock Exchange, the bonds aim to support sustainable transport initiatives by financing low-emission vehicle fleets and improving environmental, social, and governance performance, linking financial outcomes to measurable sustainability targets.
In Detail : MANILA, PHILIPPINES — The Asian Development Bank (ADB) invested 41 million Georgian lari (GEL) (about $15.2 million) as an anchor investor in Tegeta Holding’s (Tegeta) sustainability-linked bonds (SLBs)—the first SLBs issued in GEL. This investment marks a significant step for sustainable transport and green mobility in the South Caucasus region.
ADB’s support helped mobilize Tegeta’s bond issuance, raising GEL 260 million (approximately $95.7 million) on the Tbilisi Stock Exchange. Sustainability-linked bonds tie financial terms to the achievement of specific environmental or social goals. For Tegeta, these targets include modernizing and expanding its low-emission vehicle fleet and enhancing its environmental, social, and governance standards. The proceeds will finance projects that reduce carbon emissions and promote cleaner transport, primarily in Georgia and Armenia.
“We are delighted to deepen our partnership with Tegeta. After our successful collaboration on Georgia’s first local currency green bonds in 2023, we are proud to support another first: the country’s inaugural SLBs in GEL,” said ADB Country Director for Georgia Lesley Bearman Lahm. “This transaction does more than advance green transport; by issuing in GEL, it plays a crucial role in deepening Georgia’s own capital markets and sets a vital precedent for low-carbon-aligned investment across the entire Caucasus region.”
An independent review by Sustainalytics, funded under an ADB program, has certified the bond issuance as SLBs. It verified Tegeta’s SLB framework against the International Capital Markets Association’s SLB principles.
“Issuing Georgia’s first SLB is a landmark moment for our company and the region,” said Tegeta’s Chief Executive Officer Ekaterine Kavtaradze. “This innovative financing accelerates our transition to a green fleet and solidifies our leadership in sustainable transport. We are grateful for ADB’s continued partnership and shared vision for a cleaner future.”
Tegeta stands as a pioneer in the Caucasus automotive industry, offering innovative products and services. Beyond its operational leadership, Tegeta broke new ground in sustainable finance by introducing Georgia’s first local-currency green bonds in 2023 and first local-currency SLBs in 2025 and embedding ESG principles into its business model. Through these initiatives, Tegeta—together with ADB—is driving both industry modernization and low-carbon-aligned growth, setting a benchmark for responsible and forward-looking sustainable practices in the region.
ADB has supported Georgia since 2007 and is the country’s largest multilateral development partner. ADB’s loans, grants, and technical assistance to Georgia total $5 billion, of which about $1 billion has been allocated to the private sector. ADB’s five-year country partnership strategy with Georgia aims to help the country develop into a green and inclusive regional gateway while supporting sovereign and private sector investments, policy reforms, capacity building, resilient infrastructure, and regional integration.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
