Senior unsecured debt of EUR 25mln to be provided to TBC Bank to support investment financing for micro-, small and medium sized enterprises ("MSMEs") in Georgia and promote EU standards in the market under the Eastern Partnership SME Competitiveness Programme for sustainable investments in technology and equipment.
The project will enable the company to finance long-term investments of Georgian MSMEs in upgrading their technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental protection. The Project aims to deliver at least 70% of sub-loans complying with EBRD Green Economy Transition (GET) approach.
ETI score: 75
Competitive: the programme will encourage SMEs' earlier adoption of and compliance to higher, EU-level standards and build up technical capacity of TBC bank as well as provide business advices to SMEs in DCFTA-related areas.
Resilient: the programme fosters the resilience through maintaining adequate portfolio quality of partner financial institutions.
TBC BANK JSC
TBC Bank ("TBC") holds more than one third of market share in total banking assets, loan and deposit portfolios in Georgia. It offers a wide range of services (including FX transactions, non-financial services to support business development, as well as leasing, brokerage and investment banking via its subsidiaries) to its retail, corporate and MSME clients through its wide distribution network of up to 150 branches and digital channels.
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are:
(i) Financing structure that is not available in the market;
(ii) Innovative financing structure (long term tenor supporting longer investments and green finance instrument that integrates climate and ESG considerations into the financing structure);
(iii) Knowledge, innovation and capacity building (technical assistance under the programme will support timely realisation of EU-compliant investment in Georgia); and
(iv) Use of EBRD expertise on higher inclusion (e.g. adherence to labour standards which goes beyond the provisions set in PR2 of the ESP, development of comprehensive and institutional corporate social responsibility programmes) and gender standards and/or equal opportunities action plans to better understand women client needs.
Environmental and Social Summary
Categorised FI (ESP 2019). TBC bank is a long-standing client of EBRD and compliance with, and reporting on, the Bank requirements have been good in the context of the existing and previous projects.
Technical Cooperation and Grant Financing
The EaP SME Competitiveness sub-operation will be complemented by grant funding (TC and Non-TC) sourced from the EU through the Delegation Agreement between EBRD and the European Commission re SME Competitiveness Programme in Eastern Partnership:
(i) A project consultant under the EaP SMEC Programme will assist TBC with the implementation of the facility. A separate verification consultant (VC) will be engaged to verify the technical implementation of sub-projects before investment incentives are released to relevant MSMEs.
(ii) The project is supported by up to EUR 3.75 million investment incentives to TBC's sub-borrowers, calculated for each sub-project as up to 15% of the lower of (i) the disbursed amount of the sub-loan, and (ii) the investment cost of the relevant sub-project.
In addition, a project consultant will assist TBC with a market segmentation study to better understand the profile and needs of women clients. This TC is in line with and therefore approved under the Gender and Economic Inclusion Framework, supporting access to finance and entrepreneurship.
Company Contact Information
+(995 32) 227 27 27
7 Marjanishvili St. Tbilisi, Georgia 0102
PSD last updated
24 Sep 2021
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