Financed ProjectsBasisbank SME-4

Identification Code:

OP/21/0045

Total Operation Cost:

5.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Countries of Operation:

Georgia (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

4th SME Loan Facility to JSC "Basisbank", Georgia

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

This operation involves a USD 5mn lending facility with JSC Basisbank, for on-lending to eligible small and medium sized enterprises (SMEs). It is expected to have modest but favorable economic 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. The regional cooperation element is likely to be nil, as most of the beneficiary SMEs are likely to be mainly oriented to the domestic market.

Environmental Classification and Impact (summary):

Basisbank is an existing Borrower of BSTDB under a trade finance facility and SME loan. The Borrower has a functioning Environmental and Social Management System (ESMS) consisting of E&S Risk Management Instruction adopted in 2010 and last amended in 2018. It establishes the framework for identification, assessment, mitigation and reporting of the material E&S risks across the Basisbank’s activity. The system covers labour and employment practices, human rights, resource efficiency, pollution prevention, biodiversity and cultural heritage. As per the approved ESMS the Borrower committed to finance environmentally sound and sustainable operations, and with due consideration of the excluded activities. The internal due diligence procedure consists of screening against the Exclusion List, categorization based on the A, B, C classification using EBRD’s Environmental and Social Risk Categorization List. Sub-loans screened as medium or high E&S risk with long terms loan (6 month or longer) are subject of desk review, a site visit or may require a full- scale review conducted by a technically qualified consultant. The E&S issues are discussed at credit committee and/or credit decision-making group. The mitigation measures are normally translated into legal terms and conditions of financing and monitored during the lifetime of the sub-loans.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org