30683 - BOG IV

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Summary of Investment Information

Project Number

30683

Company Name

JSC BANK OF GEORGIA

Date SPI Disclosed

May 23, 2012

Country

Georgia

Region

Europe

Projected Board Date

Jun 24, 2012

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 3, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Jun 25, 2012
Signed : Jun 28, 2012
Invested : Dec 30, 2013

Sector

Commercial Banking - SME Finance

Project Description

The project consists of an IFC loan to Bank of Georgia (“BoG” or “the Bank”) aimed at improving access to finance to Georgian SMEs, with special emphasis on SMEs owned by women. The project will provide term financing for the Bank to expand its lending to women-owned SME segment. IFC will look into mobilizing additional funds from partner financial institutions as syndicated or parallel loans for the same purposes.

Bank of Georgia, established in 1994, is the largest bank in Georgia with more than a third of the market share based on total assets, total loans, total deposits and total shareholders’ equity. The Bank is a universal commercial bank engaged in corporate and retail banking and wealth management.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

Development Impact

The project is expected to support the SME business in Georgia through provided much needed long-term financing to boost the recovery of the economy after the negative consequences of the global financial crisis. The project will have an opportunity to encourange lending to women-owned SMEs. The Project is expected to have a strong demonstration effect and support mobilization of international funding for Georgian market.

E&S Category Rationale / Risks and Mitigation

IFC provides funds to BoG, an existing client, to finance Georgian SMEs and women owned enterprises. BoG’s proposed portfolio has potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. Since BoG is an existing client, which is required to comply with IFC Exclusion List, national E&S laws and IFC Performance Standards, those requirements will remain.

BoG has procedures for assessing and managing E&S risks, which have been recently amended to incorporate requirements to comply with IFC Performance Standards. However, there is a lack of implementation guidelines to ensure the due implementation of the procedures. BoG has a 4% cap for financing Exclusion List items (alcohol tobacco and gambling), and reports current exposure to this items at 1.6%.

Contacts

For Inquiries About the Project, Contact

Joint Stock Company Bank of Georgia
3 Pushkin Street, Tbilisi 0105, Georgia

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Local Access of Project Documentation

Joint Stock Company Bank of Georgia
3 Pushkin Street, Tbilisi 0105, Georgia

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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Online form: available at https://www.cao-ombudsman.org/
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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Title & Description	Anticipated Completion Date	Status	Comments	Completion Date
Develop guidelines		Completed	Completed
Staff Training		Completed	Completed
ESMS implementation reporting		Completed	Completed

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