ProCredit’s current shareholders are the following: - German-Georgian Foundation for the Promotion of Private Sector Development (the Foundation)/KfW (10%); - IMI (39%); - IPC (12%); - EBRD (20%); - IFC (16%); and - Commerzbank (3%). Technical Partner: ProCredit's professional management is provided under Management Services Agreement (MSA) with Internationale Projekt Consult GmbH (IPC), a German consulting/financial services company with over 15 years of experience in microfinance programs in emerging markets. IPC has assigned three members of its staff to serve in key management positions. The cost of senior management used to be covered by Technical Assistance but is now fully paid for by the Bank’s own resources – operational earnings. Founded in 1998 by IPC and its staff, Internationale Micro Investitionen (IMI) is the investment vehicle for IPC-managed micro finance ventures. IMI’s shareholders are the following: - IPC/IPC Staff (26.63%); - IFC (15.75%); - KfW/DEG (6.94%); - FMO (14.43%); - DOEN (15.59%); - BIO (7.33%); and - ProCredito (6.01%). IMI acquires equity participations exclusively in existing or greenfield MSE-focused financial intermediaries in developing countries. To date, IMI has invested in 18 MFIs – 10 in Europe, 5 in Latin America, 2 in Africa and 1 in Asia.

The project involves an IFC credit line of up to $4 million to ProCredit Bank.

4.0 million (USD)

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

* These investment figures are indicative

ProCredit Bank is located in Tbilisi, Georgia with thirteen branches located throughout Georgia.

The developmental impact of this project is high as it achieves the following objectives: - Speeding the transition from unemployment to self-employment and economic uplift, stimulating private sector enterprise through offering tailored loan facilities for MSEs, promoting entrepreneurship at grass roots level and fostering competition, improving efficiency and satisfying directly or indirectly the credit demand among MSEs. - Allowing a well-managed microfinance institution to increase its loan portfolio and reach more Georgian micro and small enterprises. - Stimulating MSE business growth and development, generating employment as well as building confidence in the financial sector. - Showing a Demonstration Effect: First, the establishment of ProCredit has provided for a best-practice MFI, professionally managed, with sound operating policies and credit analysis, transparent financial reporting, environmental screening procedures and a strong governance structure. Second, IFC's involvement in this project is expected, over time, to lead to the replication of commercially-oriented MFIs in the market and downscaling by existing commercial bank operations to serve MSEs. Third, IFC's investment will send a positive signal to both local and foreign investors as well as commercial banks, by demonstrating that micro and small businesses with viable operations and prudent management can be a profitable business proposition. Fourth, Technical Assistance already provided to ProCredit already has and is expected to continue to generate spill-over benefits to other financial institutions in the form of trained managers and staff. Lastly, ProCredit is expected to contribute to mobilizing MSE savings in due course.

This is an FI Type 1 project. ProCredit Bank must maintain an environmental management system to ensure that investments under relevant operations meet host country environmental, health and safety requirements and are consistent with IFC’s microfinance exclusion list.
Location of environmental documents in locally affected community