FIF - YiB Caucasus - PCBG Loan I

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Senior unsecured loan in the amount of up to EUR 15 million to be provided to ProCredit Bank Georgia ('PCBG', 'the bank') for on-lending to youth-led MSMEs in Georgia under the Youth in Business (YiB) Programme for Caucasus.

Project ID 56677

Status Pending Approval

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

Company Contact Information

JSC ProCredit Bank, Georgia
geo.info@procredit-group.com
(+995 32) 220 2222
https://www.procreditbank.ge/en
21 Al. Kazbegi Ave., Tbilisi 0160, Georgia

Project ID 56677

Status Pending Approval

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

28 Oct 2025

Disclosure date

30 Oct 2025

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

Project Objectives

The transaction will be the first one under the YiB Caucasus Programme in Georgia, therefore adding one more country to YiB framework. The facility is expected to increase lending to young entrepreneurs and MSMEs, support PCBG's capacity building and promote skills transfer to young business owners/managers.

Transition Impact

ETI score: 70

The project contributes to the objectives of the Financial Intermediary Framework (FIF), supporting Inclusive and Competitive transition qualities:

Inclusive: As part of the YiB Caucasus programme, the EBRD aims to tackle the barriers encountered by youth entrepreneurs in accessing formal financial services and promote the establishment of a dedicated youth banking market through: EBRD finance, concessional co-financing and a complementary TC to support both PFIs and Youth MSMEs directly. This sub-operation under the programme will demonstrate that Youth MSMEs represent a bankable segment in Georgia once they are served with financial and non-financial products tailored to their needs.

Competitive: The project will support PCBG's lending to private Youth MSMEs in Georgia at a 1.4x multiple of EBRD's funding. The proposed transaction is expected to encourage the Client to roll out tailored financing and/or delivery mechanism to Youth MSMEs. The Project will focus on both reaching new clients and financing Youth MSMEs in the regions outside of capital cities. In addition, direct support to eligible Youth MSMEs via the know-how component will increase their competitiveness through improvements in enterprise performance and growth.

Client Information

PROCREDIT BANK GEORGIA JSC

PCBG is a member of the international ProCredit Group, a development-oriented banking group headquartered in Frankfurt am Main, Germany. The bank has been operating in the Georgian banking sector since 1999, largely catering financial needs of SME segment, serving 3,500 business and 6,861 private clients through 6 branches, 5 service points with self-service areas in 5 main cities of Georgia. As of June 2025, the bank is ranked as 7th among the country's 19 banks by total assets, with a market share of 2.0%, and of 2.1% by both total loans and deposits.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 15,000,000.00

Additionality

Key sources of additionality under the project are:

1. Financing structure: EBRD offers a tenor, which is above the market average and is necessary to structure the project.

2. Standard-setting: Client seeks/makes use of EBRD expertise on higher Equality of Opportunity / inclusive standards (e.g. adherence to labour standards which goes beyond the provisions set in PR2 of the environmental and social policy, development of comprehensive and institutional corporate social responsibility programmes).

3. Knowledge, innovation and capacity building: EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.

4. Standard-setting: Helping projects and clients achieve higher standards: Client seeks/makes use of EBRD expertise on higher financial standards, including through financial covenants.

Green assessments

The project is determined to be Paris aligned based on the application of the Bank's Paris alignment methodology for indirect finance: (i) clearly defined used of proceeds (ii) applicable exclusions, and (iii) the client's commitment to work with EBRD on making finance flows consistent with a transition towards low greenhouse gas emissions and climate-resilient development.

Technical Cooperation and Grant Financing

Technical Cooperation ('TC'): The Programme includes two TC components: (i) Tailored capacity-building for PCBG, funded by EBRD Shareholder Special Fund ('SSF'); and (ii) TC to sub-borrowers funded by SSF, delivered by Advice for Small Businesses ('ASB') programme as complementary to financing, in the form of non-financial services ('NFS') such as advisory, trainings, e-learning, networking, mentoring, diagnostics activities and other knowledge products for Youth MSMEs.

Blended Concessional Finance: a Results-based Compensation ('RBC') funded by EBRD Shareholder Special Fund ('SSF') in favour of PCBG of up to 3% of the YiB Loan to partially compensate the client for the up-front investments related to building a sustainable YiB lending expansion.

Company Contact Information

JSC ProCredit Bank, Georgia
geo.info@procredit-group.com
(+995 32) 220 2222
https://www.procreditbank.ge/en
21 Al. Kazbegi Ave., Tbilisi 0160, Georgia

PSD Last Updated

30 Oct 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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FIF - YiB Caucasus - PCBG Loan I

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

FIF - YiB Caucasus - PCBG Loan I

Overview

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Environmental and Social Summary

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)