TBILUNIVERSALBANK SMALL AND MICRO-LENDING CONVERTIBLE LOAN

Location:

Georgia

Project number:

27164

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

17 Jun 2003

Status:

Completed

PSD disclosed:

28 Mar 2003

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.

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Email: procurement@ebrd.com

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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.

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