Up to USD 10 million local currency denominated, three year MSME credit line to Credo Bank, an MSME dedicated lender in Georgia.
The proposed loan will address some of the market gaps from both supply (local currency funding) as well as demand (MSME knowledge and expertise) side. The MSME Loan will enable Credo to continue supporting investments of local MSMEs, by providing adequately priced, medium-term local currency financing, which still remains limited on the market. Credo will continue to support regional and peri-urban customers through its branch and counsel network as well as further reinforced online lending channels.
ETI score: 60
The project contributes to the objectives of the Financial Intermediaries Framework (FIF), supporting Competitive and Resilient transition qualities. FIF seeks to (i) foster MSME competitiveness by increasing availability of financing in LCY and (ii) contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes and marketing related to MSME lending. By ensuring that banks have adequate underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.
CREDO BANK JSC
Credo Bank ("Credo", "the bank") is a commercial bank operating in Georgia catering financial needs of micro and small entities, and slowly penetrating into medium enterprises segment. Ranked the 5th largest in the Georgian banking sector and accounting for 3% of the banking assets, Credo is owned by social impact investors, Access Holding (51.2%), Proparco (15%), ResponsAbility (17%) and Triodos Doen (16.8%).
EBRD Finance Summary
Total Project Cost
Financing Structure: EBRD offers local currency financing on terms not readily available in the market.
Standard setting: helping projects and clients achieve higher standards. Client seeks/makes use of EBRD expertise on higher financial standards, including through financial covenants.
Environmental and Social Summary
Categorised FI (ESP 2019). Credo Bank is a current client of EBRD and E&S performance to date in the context of existing projects has been good. Credo Bank has developed, and put into operation, a suite of policy and procedural documents including an Environmental and Social Performance Policy (including an E&S Exclusion List), a Code of Ethics and Business Conduct and two processes for receipt of grievances. Together, these and other internal systems, cover the requirements of EBRD Performance Requirements forLabour and Working Conditions, Health, Safety and Security as well as for Financial Intermediaries. Credo Bank should continue to provide annual E&S reporting to the Bank on the implementation of systems for E&S management and on compliance with the Bank's E&S requirements.
Technical Cooperation and Grant Financing
Company Contact Information
R. Tabukashvili street 27, Tbilisi, Georgia
PSD last updated
06 Dec 2022
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