Financed ProjectsTBC Bank LC SME Loan - 5

Identification Code:

OP/19/0050

Total Operation Cost:

135.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

TBC Bank LC SME Loan - 5

Countries of Operation:

Georgia (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

3rd Local Currency SME Loan to TBC Bank, Georgia

Co-Financiers/Participants:

n/a

Guarantors/Sponsors:

n/a

Developmental and Regional Cooperation Impact:

This operation involves a GEL 135 million facility with TBC Bank, for on lending to eligible small and medium sized enterprises (SMEs). Economically, it is expected to have modest but favorable benefits for the Georgian economy, the most relevant being additional tax revenue gains from increased economic activity resulting from the financing provided, increases in employment, and multiplier effects for other parts of the economy. Since it is a local currency operation accompanied by issuance of a GEL denominated bond by BSTDB, the operation is innovative and will have a high demonstration impact. In addition, it will have benefits that result from local bond issuance such as no foreign exchange risk for the borrowers, and a modest but positive strengthening and deepening of the domestic financial market. The regional cooperation element is low, because it is not yet known who the end beneficiaries of the facility will be, but most of the SMEs are likely to be mainly oriented to the domestic market. Nevertheless, the presence of TBC Bank Group in other BSEC countries increases the potential for the realization of regional cooperation benefits.

Environmental Classification and Impact (summary):

TBC Bank has a comprehensive Environmental Policy in place, that ensures that bank complies with applicable environmental, health and safety and labor regulations, use sound environmental, health and safety, and labor practices, and take reasonable steps to make sure that the customers also fulfill their environmental and social responsibilities.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org