Financed ProjectsTBC Leasing 4

Identification Code:

OP/17/0051

Total Operation Cost:

5.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

TBC Leasing 4

Countries of Operation:

Georgia (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

TBC Leasing, 4th SME Leasing Facility

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

This operation represents a continuation of three previous SME Leasing Facilities to the client. Thus, economic benefits of the project may be expected to be the same as for the previous operations, especially in view of the fact that the operation is of the same size again. As far as qualifying these benefits, they are similar to those that general accrue from SME facilities. As such, the operation is expected to continue to have favorable albeit modest economic benefits for the Georgian economy, the most relevant being the tax revenue gains from economic activity, increase in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy.

Environmental Classification and Impact (summary):

TBC Leasing is engaged in SME leasing in Georgia by providing its clients lease financing. SME leasing is normally not likely to generate significant negative environmental and social impact. Nevertheless, there are certain environmental and social risks associated with such financing for which the FI needs to have the appropriate capability to ensure that these risks are properly assessed and mitigated. The Environmental and Social Assessment of TBC Leasing focused primarily on the existing environmental and social management arrangements, such as policies, procedures, rules and responsibilities, and whether the company is engaged in activities prohibited by the Bank as stipulated in the BSTDB Environmental and Social Exclusion List. The assessment concluded that TBC Leasing has instituted a functioning environmental and social management system which was found commensurable with the level of environmental and social risks associated with its SME financing activities. The Company reported that it is not engaged in financing any activities contained in the Bank's Environmental and Social Exclusion List. Overall, it is considered that the Operation will contribute to promoting small and medium businesses in Georgia and positively impact on poverty alleviation, stimulate self-employment, create new jobs and generate revenues.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org