Senior secured loan of up to EUR 3mn (or USD equivalent) to TBC Leasing to support investment financing for micro, small and medium sized enterprises ("MSMEs") in Georgi, and promote EU standards in the market under the Eastern Partnership SME Competitiveness ("EaP SMEC") Programme for sustainable investments in technology and equipment.
The project will enable the Company to finance medium to 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.
ETI score: 75
Competitive: the project will encourage SMEs' earlier adoption of, and compliance to higher, EU-level standards and build up technical capacity of the company.
Resilient: the project will foster the resilience through maintaining adequate portfolio quality of partner financial institutions.
TBC Leasing is the largest, universal leasing company in Georgia and a fully-owned subsidiary of TBC Bank.
EBRD Finance Summary
Total Project Cost
Key sources of additionality under the project are:
(i) Financing structure (longer than available tenor that is not available in the market);
(ii) Innovative financing structure (green finance instrument that integrates climate and ESG considerations into the financing structure); and
(iii) 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). TBC Leasing demonstrates compliance with Performance Requirements (PR) 2 and 4. The company is required to submit Annual Environmental and Social Reports to the Bank, including updates on the implementation of the E&S procedures.
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 Leasing 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 300k investment incentives to the company's sub-borrowers, calculated for each sub-project as up to 10% of the lower of (i) the disbursed amount of the sub-lease, and (ii) the investment cost of the relevant sub-project.
Company Contact Information
+995 322 12 27 77 (3202)
Chavchavadze Ave. 76 M, 0162, Tbilisi, Georgia
PSD last updated
02 Aug 2022
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Independent Project Accountability Mechanism (IPAM)
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