BANK OF GEORGIA EQUITY AND CONVERTIBLE LOAN (DEBT & EQUITY)

Location:

Georgia

Project number:

4448

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

02 Jun 1998

Status:

Completed

PSD disclosed:

26 May 1998

Project Description

Convertible loan to the second-largest bank in the country, to be used to fund medium and long-term investment projects of micro, small and medium-sized enterprises.
The project aims to: (i) assist management in helping the bank achieve international operating standards; (ii) provide medium-term resources for on-lending to clients; (iii) enhance the provision of retail banking services by the BoG; (iv) increase competition in the Georgian banking market; (v) improve BoG's corporate governance.

Transition Impact

The project is expected to support competition and improve confidence in the banking sector.

The Client

Bank of Georgia (BoG) is the second-largest bank in Georgia with assets of 34.7 million Georgian lari (ECU 24.1 million).

EBRD Finance

The project will consist of a five-year convertible loan in the form of a credit line of US$ 7 million (ECU 6.4 million) in two equal tranches. It will be priced at US$ six-month LIBOR plus a commercial margin. The facility will provide the Bank with the opportunity to convert any amount outstanding into equity, up to an amount equal to 20 per cent of BoG's share capital.

Project Cost

US$ 7 million (ECU 6.4 million).

Environmental Impact

BoG will adopt the EBRD's Environmental Guidelines for Financial Intermediaries.

Technical Cooperation

Technical assistance will be provided by EU TACIS in the form of an Institutional Building Programme.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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