Project description
and objectives:
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The proposed project consists of an unsecured mortgage loan to Bank Republic
of up to USD 8 million for a maturity of up to 6 years.
The EBRD funds will be used to provide long-term financing to individuals for
purchasing, constructing, renovating and/or re-mortgaging their real estate in
Georgia.
The Mortgage Loan and the associated TC will support Bank Republic in the
expansion of its mortgage lending and improving its mortgage operations,
including training of staff.
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Transition impact:
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The project will have a significant transition impact in the following areas:
The Mortgage Loan provided by the EBRD to a Georgian commercial bank would
support the development of the mortgage sector in Georgia, which is in the
early stage of development.
The Mortgage Loan will increase long-term funds available to a local bank,
allowing increased competition in the market and an increasing number of
people to access bank financing for purchasing, renovating and/or constructing
residential property.
The project will support Bank Republic in implementing best international
practice in its mortgage operations and develop standardised mortgage
products, ready for future securitisation.
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The client:
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Bank Republic headquartered in Tbilisi is a privately owned universal
commercial bank, the sixth largest in Georgia in terms of total assets (USD
118 million as of 31 December 2005)
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EBRD finance:
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Up to USD 8 million unsecured mortgage credit line in two tranches of USD 4
million each, with individual tranche maturities of up to 6 years.
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Total project cost:
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USD 8 million.
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Environmental impact:
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Bank Republic will be required to comply with EBRD’s Environmental Procedures
for Residential Mortgage Lending, including ensuring compliance with the
applicable national environmental, health, safety and labour standards and
submission of annual environmental reports to the Bank.
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Technical
cooperation:
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Bank Republic will be one of the beneficiaries of a TC funded by the ETC
Multi-donor fund to improve Georgian Banks’ mortgage operations, including
staff training.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Lado Sakvarelidze, Deputy General Director
Bank Republic
2 Gr. Abashidze St,
0179 Tbilisi, Georgia
Telephone: +995 32 925555
E-mail: Lados@republic.com.ge
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EBRD contact:
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Natalie Mouravidze, Operation Leader: mouravin@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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