ProCredit Georgia - Syndicated Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 36445

Status Complete

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 36445

Status Complete

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

25 Jul 2006

Disclosure date

17 May 2006

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

Up to USD 10 million of proposed syndicated loan.

Project Cost

USD 15 million.

Environmental Impact

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.

Technical Cooperation

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.

Company Contact

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

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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