Project Description
The proposed credit line will ensure that TUB is able to increase its medium-term lending to the micro and small enterprise sector. The potential capital increase through conversion will be aimed at supporting TUB’s growth strategy and consolidation of the Georgian banking sector.
Transition Impact
The proposed transaction will contribute to transition by supporting the implementation of TUB’s SME and microfinance oriented strategy and business plan. The strengthening of this financial intermediary will help to improve the level of competition within the financial system and provide medium term funding for micro and small enterprises. The EBRD’s potential equity participation will improve corporate governance, ensure that sound banking business principles are applied by the bank, and contribute to the consolidation of the banking sector in the medium term.
The Client
TUB is a small universal bank specialised in providing banking products and services to SMEs and micro-enterprises in Georgia. The bank currently operates a network of 3 branches. At the end of 2002 TUB had total assets of GEL 19.5 million (US$ 8.9 million) and equity of GEL 5.7 million (US$ 2.6 million).
EBRD Finance
EBRD financing will consist of a US$ 1.5 million five-year small and micro lending convertible loan.
Project Cost
The total amount of the loan will be of US$ 1.5 million.
Environmental Impact
TUB will be required to continue to comply with the EBRD’s Environmental Procedures for Small and Micro Loans, including adherence to EBRD’s Environmental Exclusion List, compliance with applicable Georgian environmental, health and safety legislation and submission of Annual Environmental Reports to the EBRD. TUB will be provided with environmental due diligence training.
Technical Cooperation
A TC project will be structured to assist TUB in improving its risk management both in assets and liabilities area and credit (subject to separate approval by the EBRD's management).
Company Contact
Mr Sulkhan Gvalia, Deputy Chairman
TbilUniversalBank
70 Kostava Str.
380071 Tbilisi, Georgia
Tel: +99532 9982 92
Email:
Sgvalia@tub.ge
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
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Public Information Policy (PIP)
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Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.
