Bank of Georgia SME Loan



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

20 Jul 2010



PSD disclosed:

29 Jul 2010

Translated version of this PSD: Georgian

Project Description

The EBRD has approved a financing package for the Bank of Georgia consisting of three transactions: USD 20 million Medium-Sized Co-Financing Facility (MCFF) with full recourse to the Company; USD 10 million Energy Efficiency credit line; and USD 20 million Small and Medium Enterprise Lending (SME) credit line.

The operation will enable Bank of Georgia to develop its lending programmes countrywide in the respective business segments, providing essential support for longer-term financing of corporates, micro, small and medium sized enterprises.

Transition Impact

The transition impact of this operation will mainly arise from support to expansion of lending activities along with setting standards for corporate governance and business conduct and transfer of skills to partner institutions and enterprises.

Via the MCFF and SME facilities, EBRD’s support of Bank of Georgia will add to the overall lending capability of the banking sector in Georgia thereby increasing financial intermediation. The proposed loans will increase the supply of funding to SMEs thereby increasing access to bank finance.

The Energy Efficiency project will demonstrate the benefits of energy efficiency investments in terms of cost reductions through the expansion of industrial and residential energy efficiency lending in Georgia. The project is also expected to transfer and build expertise, among banks and companies, as well as households, related to energy efficiency.

The Client

Bank of Georgia is the leading bank in Georgia with a market share of 33% of total assets and is listed on the London Stock Exchange.

EBRD Finance

USD 50 million package consisting of USD 20 million Medium-Sized Co-Financing Facility with full recourse to the Company; USD 10 million Energy Efficiency credit line; and USD 20 million SME credit line.

Project Cost

USD 50 million.

Environmental Impact

Categorised FI (2008). Bank of Georgia (BoG) has formally adopted Environmental and Social Policy and Procedures, which cover environmental, social and health and safety issues. BoG representatives attended EBRD's training workshop on environmental and social risk management in 2006 and the bank appointed an Environmental Coordinator to coordinate environmental and social risk management. Monitoring of the BoG identified that the bank applies its environmental and social risk management procedures to any transactions greater than $50,000 financed by EBRD and IFC credit lines, and to some high environmental risk transactions financed with its own funds. BoG utilises exclusion lists for screening, categorises the relative environmental risk of transactions, and utilises a Document Checklist when assessing environmental risks.

BoG has in place a Human Resources Policy, which covers payment of wages (wage level, normal and overtime), overtime, working hours, benefits, grievance mechanism for employees, health and safety, flexible working and work/life balance.

BoG will need to review its existing procedures in the context of the new Performance Requirements to ensure application across its entire commercial lending portfolio. BoG shall also submit to the Bank annual environmental reports on implementation of the environmental and social procedures and Performance Requirements 2 and 9.

Technical Cooperation


Company Contact

Macca Ekizashvilli, Head of Investor Relations
Bank of Georgia
Phone: +995 32 444 256.
Web Page:


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

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Text of the PIP

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