Affordable Mortgage Finance

Georgia: Affordable Mortgage Finance

Project Name

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

Project Page	https://www.adb.org//projects/52187-001/main
Request for Information	http://www.adb.org/forms/request-information-form?subject=52187-001
Date Generated	03 October 2023

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