37300 - BasisBank I

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Summary of Investment Information

Project Number

37300

Company Name

BasisBank JSC

Date SPI Disclosed

Jul 5, 2017

Country

Georgia

Region

Europe

Projected Board Date

Sep 11, 2017

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Sep 18, 2017
Signed : Mar 30, 2018
Invested : Apr 26, 2018

Sector

Commercial Banking - General

Project Description

The proposed project (the “Project”) consists of two products: (i) a revolving 1-year senior loan for an amount of up to US$10 million; (ii) IFC Global Trade Finance Program (GTFP) with initial limit of up to US$2 million. The Project would provide trade-related working capital financing to support local SME exporters and importers.

Associated Advisory Engagement

N/A

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The Project is expected to provide increased access to financing for SMEs. On the macro level this will help sustain both import flows of basic goods required by Georgia and critical inputs for the export sector and on the micro level, provide assistance to SMEs to better manage cash flows and assist them to grow competitively in regional and global markets, supporting domestic job creation and diversifying the country's economic base. By providing support to a smaller sized bank the Project is expected to assist in diversifying the banking sector in Georgia.

As part of its trade support activities, IFC is uniquely positioned to make a sector-wide intervention by providing short-term loans to banks to finance import and export-oriented SMEs' working capital needs. IFC plays a role in strengthening trade facilitation for SMEs in Georgia, in particular through providing comprehensive suite of trade and short-term finance solutions. Through IFC's intervention, the Bank will have additional US dollar resources to on-lend to local SMEs that may not have had access or have extremely limited access to this type of product.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed project with BasisBank is trade-related 1-year revolving working capital financing up to US$10 million with the total facility life of up to 3 years and a GTFP line with a limit of up to US$2 million to support local SME exporters and importers. The proceeds will be used to finance SMEs engaged in trading with agricultural and household goods and light production. Adverse environmental and social risks or impacts are expected be few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. The project has been tentatively categorized as category FI-2 in accordance with IFC’s Sustainability Framework. For this project BasisBank will be required to screen the loans against the IFC Exclusion List and the Georgian environmental and social laws and regulations.

The key E&S risks and impacts derive from BasisBank’s capacity to identify and manage the potential environmental and social risks associated with its lending activities particularly lending to SME’s in the light manufacturing, agribusiness sectors, trade which typically include: occupational health and safety, pollution prevention, waste and wastewater management, and labor and working conditions, among others. Moreover, E&S risks and impacts of the project may arise from the capacity and management systems in place to address these risks. BasisBank has implemented an environmental and social management system, which shall be enhanced in accordance with IFC’s requirements. BasisBank is found to be generally in line with IFC Performance Standard 2 Labor and Working Conditions on its own HR management. The bank will be required to continue implementing the environmental and social management system to ensure its investments are in compliance with the applicable environmental and social requirements, formally assign ESMS responsibilities and conduct staff training to revised ESMS. The Bank also recommended to improve its fire safety practices and conduct fire drills on a regular basis.

Contacts

For Inquiries About the Project, Contact

JSC BasisBank
Ani Skhirtladze
International Financial Institutions Relationship Manager
Tel:(995 32) 922 922+171
Ani.Skhirtladze@basisbank.ge
1, Ketevan Tsamebuli Ave., Tbilisi, Georgia
Basisbank.ge

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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
Nominate officers	07/26/2017
Establish SEMS	07/26/2017
Staff Training	07/26/2017
Implement Staff training Plan	11/12/2017
Prepare fire drills plan	07/26/2017
Implement fire safety drills training plan	02/10/2018

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