Project Name Credo COVID-19 Support for Agriculture Borrowers Project
Project Number 54270-001
Borrower / Company Credo Bank JSC
Country / Economy Georgia
Location Nation-wide
Type or Modality of Assistance
3973 Loan Ordinary capital resources USD 4.00 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP5: Promoting rural development and food security
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Arshad, Basit
Project Sponsor(s)
Description The transaction involves a loan of up to either (i) $4,000,000, if the loan is denominated in $, or (ii) GEL 12,300,000, if the loan is denominated in GEL, to Credo Bank JSC (Credo) for coronavirus disease (COVID-19) Support for Agriculture Borrowers project in Georgia.
Objectives and Scope

The ADB assistance to Credo comprises a senior loan of up to either (i) $4,000,000 if the loan is denominated in United States dollars, or (ii) GEL12,300,000 if the loan is denominated in lari, with a tenor of up to 3 years. Credo will use the proceeds of the ADB loan to fund MSME borrowers in Georgia's agriculture sector.

Status of Development Objectives In progress.
Status of Operation/Construction Operation loan fully disbursed and expected to be fully repaid in March 2024.
Linkage to Country/Regional Strategy

The transactions support the following key operational priorities of ADB's Strategy 2030: (i) addressing remaining poverty and reducing inequalities, (ii) promoting rural development and food security, and (iii) accelerating progress in gender equality through the gender action plan.

ADB plays a tangible role in deepening the finance sector in Georgia. Since 2007, it has provided nonsovereign loans totaling $375 million and TA to banks (Bank of Georgia, Credo, Finca Bank, and TBC Bank) and the NBG. Bank of Georgia, Basis Bank, and TBC Bank are also beneficiaries of ADB's Trade Finance Program. The loan to Credo is part of ADB's wider COVID-19 response and is expected to strengthen Credo's partnership with ADB.

ADB's nonsovereign efforts are aligned with its country partnership strategy, 2019-2023 and country operations business plan, 2020-2022 for Georgia. ADB's nonsovereign operations will continuously support the creation of an enabling environment to catalyze access to financial services for MSMEs, including women entrepreneurs.22 The loan to Credo complements ADB's sovereign operations support package to Georgia, which includes (i) a Countercyclical Support Facility Loan of $100 million, approved on 28 May 2020;23 (ii) a Social Protection and Fiscal Management programmatic policy-based loan of $350 million, expected to be approved later in 2020; and (iii) other programs to support reforms in energy, urban water, and education.

Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009). This transaction is classified category FI for impacts on the environment.
Involuntary Resettlement

The project has no impact on involuntary resettlement.

Indigenous Peoples The project has no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation Monitoring of the project will be carried out by ADB. Credo will provide ADB with required reporting at agreed reporting periods which include but are not limited to (i) financial statements on a quarterly basis; (ii) audited financial statements on an annual basis; (iii) compliance certificates for financial covenants; (iv) annual reporting on selected development indicators agreed between ADB and Credo; and (v) annual implementation status of its environmental and social management system (ESMS) reports.
Timetable for assistance design, processing and implementation
Concept Clearance 15 Jul 2020
Credit Committee Meeting 24 Sep 2020
Approval 15 Oct 2020
Last PDS Update 06 Oct 2023
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