The ADB transactions will support financial inclusion for MSMEs and farmers. The proposed ADB assistance comprises (i) a subordinated loan for TBC of up to $50 million (or its euro or lari equivalent) with a 10-year bullet maturity; (ii) a senior loan for TBC of up to $50 million (or its euro or lari equivalent) with a tenor of up to 6.5 years.
| Project Name | GEO: Financial Inclusion for Micro and Small Enterprise Growth (TBC Bank) | ||||||||
| Project Number | 49227-003 | ||||||||
| Borrower/Company | |||||||||
| Country | Georgia |
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| Location | |||||||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector | Finance / Finance sector development |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||
| Responsible ADB Department | Private Sector Operations Department | ||||||||
| Responsible ADB Division | Portfolio Management Division, PSOD | ||||||||
| Responsible ADB Officer | Siddiqui, Emaad | ||||||||
| Project Sponsor(s) | |||||||||
| Description | The ADB transactions will support financial inclusion for MSMEs and farmers. The proposed ADB assistance comprises (i) a subordinated loan for TBC of up to $50 million (or its euro or lari equivalent) with a 10-year bullet maturity; (ii) a senior loan for TBC of up to $50 million (or its euro or lari equivalent) with a tenor of up to 6.5 years. | ||||||||
| Objectives and Scope | |||||||||
| Linkage to Country/Regional Strategy | Under the Midterm Review of Strategy 2020, ADB aims to strengthen its support for the finance sector by assisting the development of financial infrastructure, institutions, and products and services; and by promoting inclusive growth. The borrowers' emphasis on funding segments where the potential for employment and income generation is high will support inclusive growth. The ADB loans will help the borrowers provide loans to MSMEs in order to realize their investment needs. This is consistent with the government's efforts to promote growth in rural areas and ADB's country partnership strategy for Georgia, 2014 2018. ADB plays a tangible role in supporting the deepening of financial services in Georgia. Since 2007, ADB has provided nonsovereign loans of $125 million to banks, comprising two loans to Bank of Georgia and one loan to TBC, as well as TA to NBG and TBC. Bank of Georgia and TBC also benefit from ADB's Trade Finance Program, with an exposure limit of $30 million. The loans to TBC will build on the ongoing loan; the loans to FBG and Credo will be the first. ADB nonsovereign efforts align with efforts to develop the local currency bond market, as well as sovereign support for capital markets, including contractual savings under a program approved in 2014. Staff of the ADB Central and West Asia Department participated in processing the transactions. |
| Safeguard Categories | |
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| Environment | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
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| Concept Clearance | - |
| Credit Committee Meeting | - |
| Approval | - |
| Last PDS Update | 24 Feb 2016 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Financial Inclusion for Micro and Small Enterprise Growth (TBC Bank): Extended Annual Review Report | Extended Annual Review Reports | Oct 2019 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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