fbpx 49227-003: GEO: Financial Inclusion for Micro and Small Enterprise Growth (TBC Bank) | Asian Development Bank

Georgia: GEO: Financial Inclusion for Micro and Small Enterprise Growth (TBC Bank)

Nonsovereign (Private) Project | 49227-003 Status: Active

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 Details

Project Officer
Siddiqui, Emaad Private Sector Operations Department Request for information
Country
  • Georgia
Sector
  • Finance
 
Project Name GEO: Financial Inclusion for Micro and Small Enterprise Growth (TBC Bank)
Project Number 49227-003
Borrower/Company
Country Georgia
Location
Type or Modality of Assistance
7471/3362 Loan USD 50.00 million Proposed
7471/3371 Loan USD 50.00 million Proposed
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Finance sector development

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
Environment
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval -
Last PDS Update 24 Feb 2016

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