A five-year amortising senior loan of up to €10 million to be provided to ProCredit Bank Georgia to enable the bank support eligible MSMEs under SME Competitiveness Programme in Eastern Partnership 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. At least 70% of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition (GET) approach.
ETI score: 75
Competitive: the company will expand its MSME portfolio with a focus on financing priority investments complying with EU directive(s), ultimately facilitating competitiveness of Georgian MSMEs;
Resilient: the company is expected to maintain adequate MSME portfolio quality.
PROCREDIT BANK GEORGIA JSC
ProCredit Bank Georgia ("PCBG") is a mid-sized bank in Georgia with a strategic focus on lending to SMEs and ranks 5th in terms of loans with a market share of 3.7%. PCBG reached USD 586 million in total assets as of YE2020.
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are (i) Innovative financing structure (long term tenor supporting longer investments and green finance instrument that integrates climate and ESG considerations into the financing structure) and (ii) Knowledge, innovation and capacity building (technical assistance under the programme will support timely realisation of EU-compliant investments in Georgia).
Environmental and Social Summary
Categorised FI (ESP 2019): Pro Credit Bank Georgia (PCBG) is an existing client of the Bank and compliance with, and reporting on, Bank requirements have been good in the context of the existing and previous projects.
Technical Cooperation and Grant Financing
SME Competitiveness credit line will be completemented by grant funding (TC and non-TC) from the EU: MSME sub-borrowers will benefit from investment incentives (up to 10%/15% of the lower of disbursed amount or the investment cost, depending on type of sub-project) for eligible sub-loans, while PCBG will receive technical assistance from dedicated consultants towards investment projects preparation and implementation.
Company Contact Information
JSC ProCredit Bank, Georgia
+995 32 220 2222
21 Al. Kazbegi Ave., Tbilisi 0160, Georgia
PSD last updated
30 Apr 2021
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