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
    Arshad, Basit
    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
Approval Number Facility Fund Source Amount Status
7735 Debt Security Ordinary capital resources GEL 20.00 million Committed
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
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
    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.

    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.

    Contact

    Responsible ADB Officer
    Arshad, Basit
    Responsible ADB Division
    Portfolio Management Division, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    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.

    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
    Crystal Gender Bond Project: FAST Report Faster Approach to Small Nonsovereign Transactions Oct 2022
    Crystal Gender Bond Project: Gender Action Plan Gender Action Plans 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.

    None currently available.

    Evaluation Documents See also: Independent Evaluation

    None currently available.

    Related Publications

    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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