Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

17 Jun 2003



PSD disclosed:

28 Mar 2003

Project Description

The proposed credit line will ensure that TUB is able to increase its medium-term lending to the micro and small enterprise sector. The potential capital increase through conversion will be aimed at supporting TUB’s growth strategy and consolidation of the Georgian banking sector.

Transition Impact

The proposed transaction will contribute to transition by supporting the implementation of TUB’s SME and microfinance oriented strategy and business plan.  The strengthening of this financial intermediary will help to improve the level of competition within the financial system and provide medium term funding for micro and small enterprises. The EBRD’s potential equity participation will improve corporate governance, ensure that sound banking business principles are applied by the bank, and contribute to the consolidation of the banking sector in the medium term.

The Client

TUB is a small universal bank specialised in providing banking products and services to SMEs and micro-enterprises in Georgia. The bank currently operates a network of 3 branches. At the end of 2002 TUB had total assets of GEL 19.5 million (US$ 8.9 million) and equity of GEL 5.7 million (US$ 2.6 million).

EBRD Finance

EBRD financing will consist of a US$ 1.5 million five-year small and micro lending convertible loan.

Project Cost

The total amount of the loan will be of US$ 1.5 million.

Environmental Impact

TUB will be required to continue to comply with the EBRD’s Environmental Procedures for Small and Micro Loans, including adherence to EBRD’s Environmental Exclusion List, compliance with applicable Georgian environmental, health and safety legislation and  submission of Annual Environmental Reports to the EBRD. TUB will be provided with environmental due diligence training.

Technical Cooperation

A TC project will be structured to assist TUB in improving its risk management both in assets and liabilities area and credit (subject to separate approval by the EBRD's management).

Company Contact

Mr Sulkhan Gvalia, Deputy Chairman
70 Kostava Str.
380071 Tbilisi, Georgia
Tel: +99532 9982 92
Email: Sgvalia@tub.ge

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

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