Project description
and objectives:
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The proposed project is an A/B syndicated senior loan to ProCredit Bank
(PCBG), Georgia for on-lending to private micro and small enterprises (‘MSEs’)
across Georgia for up to the aggregate amount of USD 15 million (EUR 12.5
million). The Bank syndicate USD 7 million (EUR 5.9 million) on a best effort
basis. International Cooperation and Development Fund (‘ICDF’), Taipei, China
will be invited to participate in the A-Loan from its contribution to the
‘Small Business Account’ under FIISF.
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Transition impact:
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Transition impact will be achieved through the strengthening of the leading
local bank which focuses on reaching micro and small-size enterprises through
provision of the loan facility. The proposed loan facility will also help PCB
Georgia to further expand its services to the regions outside of the capital
city. A syndicated feature of the credit line will open an international
commercial syndication market to PCB Georgia for the first time and creates a
viable structure to direct commercial resources to MSE financing in Georgia.
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The client:
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ProCredit Bank (PCB) Georgia was established in May 1999 as a micro enterprise
bank by IFC, the German-Georgian Foundation for the Promotion of Private
Sector Development (“the Foundation”), FMO, IMI and four local banks. EBRD
became a shareholder by acquiring a 6% stake from the Foundation in late 2000.
PCB was set up with the objective of providing financial services on a
countrywide basis, specifically tailored to the demand of the target group of
private micro and small enterprises (MSEs) in Georgia.
Currently ProCredit Bank ranks 5th among the Georgian banks by total assets
and 3rd by the size of its net loan portfolio. PCB is the clear market leader
in providing the financial services to MSEs via its 24 branches and outlets
all over Georgia.
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EBRD finance:
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Up to USD 10 million of proposed syndicated loan.
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Total project cost:
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USD 15 million.
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Environmental impact:
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The PCB Georgia is an existing client of the Bank and is familiar with and in
full compliance with the EBRD Environmental Procedures for Financial
Intermediaries, which include: compliance with applicable national
environmental, health, safety and labour requirements; adherence to the
Environmental Exclusion and Referral Lists; and submission of annual
environmental reports to the Bank. PCB Georgia submits Annual Environmental
Reports. PCB Georgia’s staff has also participated in recent environmental
training for Georgian FIs.
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Technical
cooperation:
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USD 1.5 million has been provided to PCB Georgia by EBRD (provided by USAID
and BP Exploration (Caspian Sea)) for the management support, capacity
building, the expansion of branch network and provision of MSE finance in
Georgia.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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ProCredit Bank Georgia
Philip Sigwart, General Manager
Tel: +995 (32) 202222
Fax: +995 99 979 871
E-mail: p.sigwart@procreditbank.ge
Website: www.procreditbank.ge
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EBRD contact:
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Lilit Davoyan, Operation Leader: davoyanl@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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