Project Description
Senior unsecured loan of USD 20 mln (or the equivalent in local currency) to be provided to TBC Bank (‘TBC’) to support investment financing for on-lending to women-led MSMEs in Georgia under the Women in Business (EaP WiB) Programme in the Eastern Partnership countries.
Project Objectives
The project will address the gender related inclusion gap for access to finance in Georgia, as lending to women entrepreneurs might be hindered by the absence or shortage of collateral. The First Loss Risk Cover (FLRC) available under the WiB loan, will enable the bank to enhance borrowing capacity of their target clientele. Moreover, WiB will continue promoting women entrepreneurship and women participation in business by building or improving efficiency of respective entities through expertise and advisory services (ASB) provided under the framework.
Transition Impact
ETI score: 80
The WiB loan to TBC under EaP WiB Programme will support the Inclusive and Competitive transition qualities.
Inclusive: the project will address the gender related inclusion gap for access to finance in Georgia, by promoting women’s entrepreneurship and more broadly women’s participation in the economy, and by alleviating gender gaps in access to finance.
Competitive: the project will support TBC’s lending to women-led MSMEs in Georgia above the EBRD investment, with a focus on regions and new clients.
Client Information
TBC BANK JSC
TBC Bank (“TBC”) is a leading universal bank in Georgia holding more than one third of market share in total banking assets, loan and deposit portfolios in Georgia. It offers a full range of products and services (including FX transactions, non-financial services to support business development, as well as leasing, brokerage and investment banking via its subsidiaries) to the retail, corporate and MSME clients through the wide distribution network of over 140 branches and digital channels.
EBRD Finance Summary
USD 20,000,000.00
Total Project Cost
USD 20,000,000.00
Additionality
Key sources of additionality under the project are:
(i) Financing structure that is scarce in the market (medium to long term funding, in local currency; dedicated financing instrument tailored to needs of WiB segment).
(ii) Standard-setting by helping projects and clients achieve higher standards, as the bank seeks/makes use of EBRD expertise on higher financial standards, inclusion and gender standards.
Environmental and Social Summary
Categorised FI (ESP 2019). TBC bank is a long-standing client of EBRD and compliance with, and reporting on, the Bank requirements have been good in the context of the existing and previous projects.
Technical Cooperation and Grant Financing
TC: The EaP WiB TC Programme (“Programme”) includes two-linked components funded by the Swedish International Development Cooperation Agency (SIDA) and the European Union: (i) capacity building to PFIs to implement the Programme and a range of crosscutting activities in support of the Programme promotion and management; (ii) women-led SMEs access to know-how (Advice for Small Businesses).
Non-TC: The WiB Loan is accompanied by a first loss risk cover (“FLRC”) provided under WiB Programme and will be funded by the European Union.
The project will also benefit from the European Fund for Sustainable Development (EFSD) Plus Guarantee Programme in the form of first loss risk cover to support lending that targets economic inclusion.
Company Contact Information
Ketevan Bitskinashvili
[email protected]
+(995 32) 227 27 27
https://tbcbankgroup.com/
7 Marjanishvili St. Tbilisi, Georgia 0102
PSD last updated
07 Aug 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: [email protected]
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: [email protected]
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email [email protected] to get guidance and more information on IPAM and how to submit a request.
