Georgia: Crystal Gender Bond Project

Nonsovereign Project | 56134-001

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.

Project Details

  • Project Officer
    Perez, Gema
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Georgia
  • Sector
    • Finance
Project Name Crystal Gender Bond Project
Project Number 56134-001
Borrower / Company Joint Stock Company Microfinance Organization Crystal
Country / Economy Georgia
Location
Type or Modality of Assistance
7735 Debt Security Ordinary capital resources GEL 20.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Gender equity
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Perez, Gema
Project Sponsor(s)
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
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.
Safeguard Categories
Environment
Involuntary Resettlement
Indigenous Peoples
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 10 Oct 2022

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

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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