The project’s sponsor is TBC Bank, which is the largest bank in Georgia, holding 20.1% of the country’s banking assets and 26.4% of deposits. TBC Bank was established on December 17, 1992 and provides a wide range of retail and corporate banking services. The founding shareholders are several local Georgian businessmen who retain a 47% direct and indirect shareholding in the Bank. Other major shareholders include Soros Investment Capital (25%), DEG (10%) and IFC (9%).

The proposed IFC investment is a subordinated loan of $4 million.

4.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	4.0
Equity

* These investment figures are indicative

TBC Bank is headquartered in Tbilisi and has nine branches, four of which are in Tbilisi.

This is an FI type 1 project. TBC Bank will need to maintain an environmental management system that is adequate to identify and address any environmental and social issues associated with the project.
Location of environmental documents in locally affected community

The expected development impact of this project is high, because it achieves the following objectives in a frontier country: - Contribute to further development of a leading Georgian bank through supporting its capital base, allowing for increased asset growth and investment in the Bank’s infrastructure. TBC plays a crucial role in terms of improving public’s confidence in banking sector in general and providing a role model for other banking institutions in the market. - Allow a leading Georgian bank to increase the maturity of its liabilities and thereby better manage its asset and liability position. - Introduce a new financial instrument into the Georgian banking sector. The project will also support the efforts of the National Bank of Georgia to bring the local capital adequacy guidelines more into line with Basle rules, by utilizing the framework established by newly implemented regulations. IFC role will complement a broader focus on improving the business environment by further development of the banking sector in Georgia through provision of long-term funding to support the leading Georgian private bank in its further development. The proposed investment is consistent with and supports IFC’s regional/country strategy.