FIF - DCFTA - TBC SME Facility

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 48733

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 48733

Status Complete

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

22 Mar 2017

Disclosure date

09 Feb 2017

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."

Translated version of this PSD: Georgian

Project Description

A financing package up to US$ 100 million in two equal tranches denominated in local currency for TBC Bank consisting of three transactions: up to US$ 60 million equivalent in Georgian Lari credit line to assist local Small and Medium Enterprises (SMEs) comply with DCFTA requirements; up to US$ 20 million equivalent in Georgian Lari Women in Business (WiB) financing programme to support small and Medium-Sized Enterprises (SMEs) run or managed by women and up to US$ 20 million equivalent in Georgian Lari credit line for on-lending to local Small and Medium Enterprises (SMEs).

Project Objectives

The financing package will enable TBC Bank to develop its lending programmes countrywide in the respective business segments, providing essential support for longer-term financing in local currency to SMEs.

Transition Impact

The transition impact of this operation will include the development of tailored financing instruments in local currency to support SMEs in overcoming DCFTA related challenges as well as addressing gender specific gaps in access to finance by supporting underserved women entrepreneurs.

Through the above mentioned credit line facilities, EBRD's support of TBC Bank will contribute to the overall lending capability of the banking sector in Georgia thereby increasing financial intermediation.

The proposed EBRD's loans will increase the supply of local currency funding to SMEs thereby increasing access to bank finance.

Client Information

TBC BANK JSC

TBC Bank is the leading universal bank in Georgia with total assets of US$ 3.3 billion and a market share of 30 per cent of total assets. TBC Bank Group PLC is listed on the London Stock Exchange.

EBRD Finance Summary

USD 60,000,000.00

Total Project Cost

USD 60,000,000.00

Environmental and Social Summary

Categorised FI (2014). TBC Bank is an existing Client of the EBRD and as such is familiar with the Bank's environmental and social requirements. Reporting to date submitted by TBC Bank has been satisfactory and confirms compliance with not only EBRD requirements but also the requirements of
IFC and ADB.

TBC Bank shall ensure on-going compliance with the Performance Requirements 2, 4 and 9 and provide relevant training to personnel, especially newly-hired and regional branches staff. TBC Bank should also continue to provide annual report on environmental and social matters in a scope and format satisfactory to the EBRD.

Technical Cooperation

The DCFTA credit line is complemented by grant funding (TC and Non-TC) from the European Union (EU) Neighbourhood Investment Facility (NIF) in the form of:

TC: i) to engage a Project Consultant to assist TBC Bank with the implementation and monitoring of the DCFTA programme and ii) a separate Verification Consultant to verify the technical implementation of the investments by the sub-borrowers (SMEs) before the Incentives payment is released to the relevant SME, and iii) Business advice for SMEs to enhance their technical, managerial, market knowledge and investment project development capacity.

Non-TC: investment incentives to sub-borrowers.

The WiB credit line is complemented by grant funding (TC and Non-TC) from the European Union (EU) Neighbourhood Investment Facility (NIF), the Swedish International Development Cooperation Agency (SIDA), the EBRD's Early Transition Countries (ETC) Fund and the EBRD Shareholders Special Fund in the form of:

TC: i) capacity building to support TBC Bank in developing financial products and lending practices to service specifically women-led SMEs and ii) Business advisory services to increase women SMEs access to know-how, non-financial business development services.

Non-TC: Credit enhancement support to TBC Bank.

Company Contact Information

Tamar Kakulia Deputy CFO Capital Markets and Investor relations
+995 32 227 27 27
www.tbcbank.ge

Transition impact

ETI Score:80

PSD last updated

30 Apr 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

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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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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