Project description
and objectives:
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The proposed credit line will ensure that TUB is able to increase its
medium-term lending to the micro and small enterprise sector. The potential
capital increase through conversion will be aimed at supporting TUB’s growth
strategy and consolidation of the Georgian banking sector.
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Transition impact:
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The proposed transaction will contribute to transition by supporting the
implementation of TUB’s SME and microfinance oriented strategy and business
plan. The strengthening of this financial intermediary will help to improve
the level of competition within the financial system and provide medium term
funding for micro and small enterprises. The EBRD’s potential equity
participation will improve corporate governance, ensure that sound banking
business principles are applied by the bank, and contribute to the
consolidation of the banking sector in the medium term.
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The client:
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TUB is a small universal bank specialised in providing banking products and
services to SMEs and micro-enterprises in Georgia. The bank currently operates
a network of 3 branches. At the end of 2002 TUB had total assets of GEL 19.5
million (US$ 8.9 million) and equity of GEL 5.7 million (US$ 2.6 million).
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EBRD finance:
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EBRD financing will consist of a US$ 1.5 million five-year small and micro
lending convertible loan.
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Total project cost:
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The total amount of the loan will be of US$ 1.5 million.
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Environmental impact:
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TUB will be required to continue to comply with the EBRD’s Environmental
Procedures for Small and Micro Loans, including adherence to EBRD’s
Environmental Exclusion List, compliance with applicable Georgian
environmental, health and safety legislation and submission of Annual
Environmental Reports to the EBRD. TUB will be provided with environmental due
diligence training.
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Technical
cooperation:
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A TC project will be structured to assist TUB in improving its risk management
both in assets and liabilities area and credit (subject to separate approval
by the EBRD's management).
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr Sulkhan Gvalia, Deputy Chairman
TbilUniversalBank
70
Kostava Str.
380071 Tbilisi, Georgia
Tel: +99532 9982 92
Email:
Sgvalia@tub.ge
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EBRD contact:
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Gregor Kastelic, Operation Leader: kastelig@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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