Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

04 Nov 1997



PSD disclosed:

17 Oct 1997


Project Description

A US$ 10 million equity and debt financing for United Georgian Bank.

The objective of this operation is to strengthen the capital base of United Georgian Bank and to provide it with stable term funding for on-lending to the Georgian bank's customers. The project aims to promote enhanced institutional development and adherence to good standards of corporate governance, thereby strengthening one of the leading banks in Georgia.

Transition Impact

The project will promote efficient and profitable business practices in the financial sector of the country, thereby supporting the efficiency of markets, the development of the financial sector and better services for local and foreign investors in Georgia. The project will expand the availability of finance for private companies and increase the range of financial services and instruments across the country. The operation should have a strong demonstration effect because of the scarcity of foreign investment in the Georgian financial sector.

The Client

United Georgian Bank is the largest bank in Georgia in terms of total assets and equity capital. It is organised as a joint-stock company, has a full banking licence, and is supervised by the National Bank of Georgia.

EBRD Finance

The operation envisages providing United Georgian Bank with an equity investment in the form of subscription to ordinary voting shares and a five-year loan, which will be used for on-lending to the United Georgian Bank's customers in the small and medium-sized enterprise (SME) sector of the Georgian economy.

Project Cost

US$ 10 million (ECU 9.2 million), all of which is provided by the EBRD.

Environmental Impact

The environmental effect of the operation will depend on the end use of EBRD proceeds by customers of the United Georgian Bank. Use of proceeds (including equity funds) will be restricted by covenants to environmentally benign goods and commodities. As part of the initiative to enhance good corporate governance, environmental policy will be respected by emphasising the risks of financing dangerous or polluting products. United Georgian Bank will implement the EBRD's environmental procedures and report annually.

Technical Cooperation

Technical cooperation (TC) assistance will be provided in conjunction with the investment operation. The TC programme will be structured in a focused and rigorous manner in order to deliver immediate benefits in key areas, such as information technology / management information systems, branch network control, asset / liability management, operational procedures and credit / lending systems.

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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