Project description
and objectives:
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The proposed project is USD 10 million debt financing and equity investment
being part of approximately USD 11 million capital increase announced by UGB
and maintaining EBRD’s 18% shareholding in UGB.
The objective of this operation is to strengthen the capital base of United
Georgian Bank (UGB) and to provide it with stable term funding for on-lending
to private Micro, Small and Medium enterprises (MSEs and SMEs). The project
will support further growth of UGB, enabling it to implement its business plan
and increase its competitiveness in the local market.
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Transition impact:
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The project will support the further development of UGB and assist the
strategic investor in developing one of the largest banks in the country. It
will also ensure good corporate governance standards. Further the project
will increase financial intermediation through medium-term funding for
Georgian SMEs and MSEs, a market which has had limited access to the financial
system.
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The client:
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UGB, established in 1995 through the merger of three formerly state-owned
banks, is the fourth largest private bank in Georgia in terms of total assets.
A controlling majority equity stake was purchased by Vneshtorgbank, Russia
in January 2005.
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EBRD finance:
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The project will provide UGB with an capital increase via equity investment in
the form of subscription to ordinary voting shares and a five-year loan, which
will be used for on-lending SMEs and MSEs.
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Total project cost:
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USD 10 million plus equity investment amount, all of which is provided by the
EBRD.
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Environmental impact:
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United Georgian Bank will be required to comply with EBRD’s Environmental
Procedures for Small and Micro Loans and the Environmental Procedures for
Local Banks which require adherence to the Bank’s Environmental Exclusion and
Referral List, compliance with the applicable national environmental, health
and safety requirements and submission of an Annual Environmental Report to
the Bank.
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Technical
cooperation:
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Existing TC is being provided to strengthen UGB’s MSE lending procedures, this
is being funded by EU. No additional TC is envisaged at this stage.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Irakli Medvabishvili, Deputy General Director, UGB
E-mail: irakli@ugb.com.ge
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EBRD contact:
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Sabina Dziurman, Operation Leader: dziurmans@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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