Georgia : Crystal Gender Bond Project
The transaction involves an investment of up to GEL20,000,000 in a 2-year gender bond issued by the Joint Stock Company Microfinance Organization Crystal (Crystal) for the Crystal Gender Bond Project in Georgia.
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|Project Name||Crystal Gender Bond Project|
|Borrower / Company||Joint Stock Company Microfinance Organization Crystal
|Country / Economy||Georgia
|Type or Modality of Assistance||
|Operational Priorities||OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
|Sector / Subsector||
Finance / Small and medium enterprise finance and leasing
|Gender||Gender equity theme|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Arshad, Basit|
|Description||The transaction involves an investment of up to GEL20,000,000 in a 2-year gender bond issued by the Joint Stock Company Microfinance Organization Crystal (Crystal) for the Crystal Gender Bond Project in Georgia.|
|Objectives and Scope||While micro, small, and medium-sized enterprises (MSMEs), including women-owned MSMEs (WMSMEs), play a key role in Georgia's economy, their growth remains constrained by a lack of access to finance. The unstable macroeconomic environment since 2020 has also demonstrated that access to affordable local currency financing is crucial. To address this financing gap, the Asian Development Bank (ADB) will subscribe, as an anchor investor, to a gender bond of about GEL27,000,000 issued by Crystal. Crystal will use all proceeds of the gender bond to finance WMSMEs, including for climate-related loans.|
|Status of Development Objectives||According to ADB's country operations business plan, 20202022 for Georgia, ADB's nonsovereign operations will continuously support the creation of an enabling environment to catalyze access to financial services for MSMEs, including female entrepreneurs; and to deepen Georgia's capital and money markets by focusing on initiating institutional reforms and other interventions to mobilize domestic resources, including private resources for long-term investment, and promoting climate change mitigation and adaptation and stronger environmental sustainability. This project complements the work that ADB is undertaking in its Fiscal Resilience and Social Protection Support Program|
|Status of Operation/Construction||Fully disbursed.|
|Linkage to Country/Regional Strategy||ADB's Strategy 2030 emphasizes support for the finance sector to achieve greater financial inclusion and gender equality. The transaction contributes to finance sector development by supporting the growth of a financial institution that plays a key role in Georgia's microfinance sector, while also contributing to accelerating progress in gender equality, an operational priority of ADB's Strategy 2030. Thereafter, women's opportunities to access affordable finance, including green loans, will be enhanced. The project will also promote gender equality standards in Crystal to enhance female staff participation in the finance sector in Georgia.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The investment is expected to result in no or minimal environmental and social impacts and is classified as category FI treated as category C for impacts on the environment.|
|Involuntary Resettlement||The investment is expected to result in no or minimal environmental and social impacts and is classified as category FI treated as category C for impacts on involuntary resettlement.|
|Indigenous Peoples||The investment is expected to result in no or minimal environmental and social impacts and is classified as category FI treated as category C for impacts to indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation||Crystal has several climate-related and inclusive finance initiatives targeting communities such as young people, women, and farmers, as well as its employees. These initiatives have been recognized through rewards and international programs, such as the Corporate Social Responsibility Award and the UN Global Compact SDG Pioneer Program. Crystal maintains an external and internal grievance redress mechanism. In line with its environmental and social responsibility vision, Crystal will engage directly with female borrowers to provide MSME loans for climate-friendly purchases. The GAP annexed to the legal documentation outlines specific gender measures to be conducted.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||18 Jun 2022|
|Credit Committee Meeting||16 Sep 2022|
|Approval||10 Oct 2022|
|Last PDS Update||25 Jul 2023|
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.
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|Title||Document Type||Document Date|
|Crystal Gender Bond Project: Gender Action Plan||Gender Action Plans||Oct 2022|
|Crystal Gender Bond Project: FAST Report||Faster Approach to Small Nonsovereign Transactions||Oct 2022|
|Crystal Gender Bond Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Aug 2022|
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Evaluation Documents See also: Independent Evaluation
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