BANK OF GEORGIA EQUITY AND CONVERTIBLE LOAN (DEBT & EQUITY)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 4448

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 4448

Status Complete

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

02 Jun 1998

Disclosure date

26 May 1998

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

Convertible loan to the second-largest bank in the country, to be used to fund medium and long-term investment projects of micro, small and medium-sized enterprises.

The project aims to: (i) assist management in helping the bank achieve international operating standards; (ii) provide medium-term resources for on-lending to clients; (iii) enhance the provision of retail banking services by the BoG; (iv) increase competition in the Georgian banking market; (v) improve BoG's corporate governance.

Transition Impact

The project is expected to support competition and improve confidence in the banking sector.

The Client

Bank of Georgia (BoG) is the second-largest bank in Georgia with assets of 34.7 million Georgian lari (ECU 24.1 million).

EBRD Finance

The project will consist of a five-year convertible loan in the form of a credit line of US$ 7 million (ECU 6.4 million) in two equal tranches. It will be priced at US$ six-month LIBOR plus a commercial margin. The facility will provide the Bank with the opportunity to convert any amount outstanding into equity, up to an amount equal to 20 per cent of BoG's share capital.

Project Cost

US$ 7 million (ECU 6.4 million).

Environmental Impact

BoG will adopt the EBRD's Environmental Guidelines for Financial Intermediaries.

Technical Cooperation

Technical assistance will be provided by EU TACIS in the form of an Institutional Building Programme.

Company Contact

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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