MCFF - Bank Republic Full Recourse

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 39353

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 39353

Status Complete

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

22 Jul 2008

Disclosure date

29 Jun 2008

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

Medium Sized Co-financing Facility (“MCFF”) of USD 20 million, of which a USD 10 million loan with the full recourse to Bank Republic and USD 10 million Bank’s risk participation in Bank Republic’s loans with maturity up to 8 years. The MCFF will be used to provide medium- to long-term financing to Georgian private companies, clients of Bank Republic, to meet their requirements for larger loans. The EBRD will finance sub-loans which cannot be financed by the bank due to internal or regulatory risk diversification guidelines or policies.

Transition Impact

C) The MCFF facility will help BR to ensure its prudent portfolio concentration and risk diversification and will enable it to support the longer-term financing needs of its clients. It will contribute to build up expertise among the bank’s staff and sub-borrowers through training and project preparation. The facility will also help Bank Republic to apply higher requirements to clients’ corporate governance and business standards in line with the Bank’s policy and practice and send a signal to the local private sector that observing these standards will facilitate access to finance.

The Client

Bank Republic is a subsidiary of Societe Generale, one of the leading financial services companies in Europe. It is a universal commercial bank, ranking fourth in Georgia by total assets (USD 316 million as of 31 December 2007).

EBRD Finance

Medium Sized Co-financing Facility of USD 20 million, of which a USD 10 million loan with the full recourse to Bank Republic and USD 10 million for the Bank’s risk participation in Bank Republic’s loans

Project Cost

USD 65 million.

Environmental Impact

Screened FI. Bank Republic has recently developed and adopted its own Risk Management Procedure, which also covers management of environmental risks. After the inclusion in EBRD’s partner banks list the bank undertook implementation of EBRD’s Environmental Procedures, including compliance with the FI Environmental Exclusion and Referral Lists. In January 2006 and February 2008 Bank Republic staff participated in the Environmental and Social Risk Management training programme organised by the Bank’s Environment and Sustainability Department. Bank Republic complies with all national health, safety and environmental standards as well as with national employment laws and standards. Bank Republic will also comply with relevant Environmental Procedures within respective EBRD transactions and submit an Annual Environmental Report to EBRD.

Technical Cooperation

The Energy Efficiency credit line will be complemented by grant funding to engage consultants in order to prepare energy audits, review investment proposals, support companies in securing funding from BR and provide implementation support. The budget for the framework assignment is USD 2,398,000 funded by ETC, UK- DFID SEI Fund and CIDE-EBRD 2006/09 Fund.

Company Contact

Giorgi Kerkadze, IFI Relationship Manager
Bank Republic
2 Gr. Abashidze St,
0179 Tbilisi, Georgia

Telephone: +995 32 925555
E-mail: Giorgi.Kerkadze@republic.ge

Transition impact

ETI Score:60

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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