The transaction will support mortgage and home renovation financing for households with lower incomes. The proposed ADB assistance comprises senior loan of up to $25 million or its lari equivalent to Credo with a tenor of up to 5 years.
|Project Name||Low-Income Housing Finance|
|Borrower/Company||Credo Bank JSC
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Banking systems and nonbank financial institutions
|Gender Equity and Mainstreaming||Gender equity|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Private Sector Financial Institutions Division|
|Responsible ADB Officer||Guadix Martin, Pablo A.|
|Description||The transaction will support mortgage and home renovation financing for households with lower incomes. The proposed ADB assistance comprises senior loan of up to $25 million or its lari equivalent to Credo with a tenor of up to 5 years.|
|Objectives and Scope||Credo will focus on funding home renovation and construction in rural areas and the periphery of the capital targeting low-income clients.|
|Linkage to Country/Regional Strategy||
The transaction supports the following key operational priorities of ADB's Strategy 2030: (i) addressing remaining poverty and reducing inequalities; (ii) promoting rural development; and (iii) improving progress in gender equality. The transaction is consistent with government efforts to promote the well-being of its citizens and ADBs country partnership strategy, 2014 - 2018 for Georgia.
Consistency with sector strategy and relevant ADB operations. ADB plays a tangible role in deepening the finance sector in Georgia. Since 2007, ADB provided nonsovereign loans amounting to $255 million and TA to banks. As well as through 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.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Credo''s housing loans be funded under the transactions have minimal or no adverse environmental impacts.|
|Involuntary Resettlement||Credo's housing loans be funded under the ADB loan are unlikely to entail impacts on involuntary resettlement.|
|Indigenous Peoples||Credo's housing loans be funded under the ADB loan are unlikely to entail impacts on indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation||Potential mortgage finance borrowers participated in Credo''s extensive market research activity. Credo has extensive national networks of branches and village councilors through which to engage and empower beneficiaries. Participation plans will not be prepared as Credo maintains strong public profiles through its branch presence and marketing, which allow it to participate actively with civil society.|
|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 Jun 2019|
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|
|Low-Income Housing Finance: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jan 2019|
|Low-Income Housing Finance and Affordable Mortgage Finance: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2018|
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.
None currently available.
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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