Up to EUR 1.5 million SME line will be on-lent to eligible SMEs in line with EBRD FIF Policy.
The loan will enable BB to maintain and expand longer-term lending to the good quality private Georgian MSMEs, in the time of crises and post crisis, hence complementing other crisis response measures undertaken by the Bank under the COVID-19 Solidarity Package.
ETI score: 60
Competitive: BB will expand its SME portfolio, with a focus on reaching regional clients and attracting new clients.
Resilient: The projects aims to ensure prudent lending practices and adequate portfolio quality.
JSC Basis Bank ("BB"), Fitch rated (B+) is SME-focused bank ranked 5th by total assets and 6th by loan portfolio among 15 banks in Georgia, with 3.2% and 2.85% respective market shares as of 2Q 2020. BB is majority owned by Hualing Group (unrated) (91.2%) - one of the largest Chineseconglomerates engaged in diversified industries (real estate, foreign trade, livestock, logistics) and geographies. BB serves over 5000 business customers through its 24 branches across the country employing near 550 people.
EBRD Finance Summary
Total Project Cost
EBRD offers financing that is not available in the market from commercial souces on reasonable terms and conditions, e.g. a longer grace period and the tenor. Such financing is necessary to structure the project.
Environmental and Social Summary
Categorised FI (ESP 2019). Basis Bank (BB) is an existing client of EBRD and has confirmed satisfactory compliance with the requirements of the EBRD's Performance Requirements 2, 4 and 9 through its annual reporting. BB has appropriate staffing and risk management procedures in place to cover the requirements of MSME line. BB is required to apply its current E&S risk management process and ensure compliance of sub-projects with national EHS requirements. BB will continue furnishing EBRD with annual environmental and social reports.
Technical Cooperation and Grant Financing
This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
Company Contact Information
PSD last updated
04 Dec 2020
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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 following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.