Bank of Georgia, FIF DCFTA SME Facility



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

04 May 2016



PSD disclosed:

31 Mar 2016

Translated version of this PSD: Georgian

Project Description

A financing package up to USD 100 million in two equal tranches (second tranches uncommitted) denominated in LCY for the Bank of Georgia consisting of three transactions: Up to USD 50 million (Tranched) equivalent in Georgian Lari credit line to assist local Small and Medium Enterprises (SMEs) comply with DCFTA requirements; Up to USD 40 million (Tranched) equivalent in Georgian Lari credit line for on-lending to local Small and Medium Enterprises (SMEs); Up to USD 10 million (Tranched) equivalent in Georgian Lari Women in Business (WiB) financing programme to support SMEs run or managed by women.

Project Objectives

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

Transition Impact

The transition impact of this operation will include development of the 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 Bank of Georgia will add to the overall lending capability of the banking sector in Georgia thereby increasing financial intermediation.

The proposed credit lines will increase the supply of local currency funding to SMEs thereby increasing access to bank finance.

Client Information


Bank of Georgia is the leading universal bank in Georgia with total assets of USD 3.8 billion and a market share of 33.4% of total assets and is listed on the main market of the London Stock Exchange.

EBRD Finance Summary

USD 50,000,000.00

Total Project Cost

USD 50,000,000.00

Environmental and Social Summary

Categorised FI (2014). BoG is an existing Client of the bank and as such is familiar with the Bank's environmental and social requirements. Bank of Georgia (BoG) has previously 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.

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

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 BoG 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. 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) and the EBRD's Early Transition Countries (ETC) Fund in the form of:

TC: i) capacity building to support BoG 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 BoG.

Company Contact Information

Ekaterina Shavgulidze, Head of Investor Relations
+995 32 444 117

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