Georgia: Affordable Mortgage Finance

Project Name Affordable Mortgage Finance
Project Number 52187-001
Borrower / Company TBC Bank JSC
Country / Economy Georgia
Location Nation-wide
Type or Modality of Assistance
3760 Loan Ordinary capital resources USD 100.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions

Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Rohner, Tina
Project Sponsor(s)
Description The transaction will support affordable mortgage and home renovation financing for urban and rural dwellers households with lower and medium incomes. The proposed ADB assistance comprises a senior loan of up to the lari equivalent of $100 million to TBC with a tenor of up to 6 years.
Objectives and Scope TBC will provide mortgage financing in urban areas benefiting mainly low- to medium-income families.
Linkage to Country/Regional Strategy

The proposed transaction supports improving progress in gender equality in line with ADB's strategy 2030. The transaction is consistent with government efforts to promote the well-being of its citizens and ADBs country partnership strategy, 2014-2018 with Georgia.

ADB plays a tangible role in deepening the finance sector in Georgia. Since 2007, it has provided nonsovereign loans amounting to $255 million and TA to banks and its Trade Finance Program. ADBs nonsovereign efforts align with a sovereign program approved in 2016 and a new program anticipated for 2019 to develop the capital markets, including the issuance of lari bonds and covered bond legislation, among other banking policy reforms.

Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects TBC's mortgages to be funded by the ADB loan have minimal or no adverse environmental impacts.
Involuntary Resettlement TBC's mortgages to be funded by the ADB loan are unlikely to entail impacts on involuntary resettlement.
Indigenous Peoples TBC's mortgages to be funded by the ADB loan are unlikely to entail impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation Potential housing and mortgage finance borrowers participate through market research activity undertaken by TBC in determining the most appropriate lending product design to its target customers. TBC has extensive national networks of branches and fintech service channels through which to engage and empower beneficiaries.
Timetable for assistance design, processing and implementation
Concept Clearance 31 Jul 2018
Credit Committee Meeting 29 Oct 2018
Approval 05 Dec 2018
Last PDS Update 12 Sep 2022

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