Summary of Proposed Investment
Project Number
9939
Company Name
JSC BANK OF GEORGIA
Date SPI Disclosed
Jan 11, 2000
Country
Georgia
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Mar 27, 2000
Signed : Apr 13, 2000
Invested : Jul 27, 2000
Project Description
Bank of Georgia has over 2,000 foreign and domestic shareholders, the majority which are current or former employees of the bank.
- Project Cost Including proposed IFC investment
The proposed IFC investment is a seven-year credit line of US$3 million to be onlent to Georgian citizens and companies.
- Location of project and Description of site
Bank of Georgia is headquartered in Tbilisi, and has branches across the country.
- Description of Company and Purpose of Project
The project is to provide a $3 million credit line and technical assistance package to the Bank of Georgia (BoG) to support the development of mortgage financing. The funds would be used solely for real estate-based financing, including acquiring, constructing or upgrading both commercial and residential property. In each case, the loan would be secured by a first-ranking mortgage on the property to be financed. The IFC loan would be accompanied by a program of specialized technical assistance (TA) to assist the BoG with :
- appraising, processing and supervising mortgage loans;
- administering the IFC funds; and
- developing and strengthening BoG''s policies relating to mortgage loans.
It is also envisaged that the TA team could undertake more general activities such as training credit officers on real estate appraisal and providing legal advice on facilitating mortgage financing.
- Environmental Category and Issues
This is an environmental review category C project. BoG will be required to apply IFC’s Exclusion List to commercial property mortgages and to loans for new construction, and ensure that construction loans and commercial properties comply with applicable environmental and social requirements of Georgia.
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-7711
Fax: (202) 974-4384
- Project Cost Including proposed IFC investment
The proposed IFC investment is a seven-year credit line of US$3 million to be onlent to Georgian citizens and companies.
- Location of project and Description of site
Bank of Georgia is headquartered in Tbilisi, and has branches across the country.
- Description of Company and Purpose of Project
The project is to provide a $3 million credit line and technical assistance package to the Bank of Georgia (BoG) to support the development of mortgage financing. The funds would be used solely for real estate-based financing, including acquiring, constructing or upgrading both commercial and residential property. In each case, the loan would be secured by a first-ranking mortgage on the property to be financed. The IFC loan would be accompanied by a program of specialized technical assistance (TA) to assist the BoG with :
- appraising, processing and supervising mortgage loans;
- administering the IFC funds; and
- developing and strengthening BoG''s policies relating to mortgage loans.
It is also envisaged that the TA team could undertake more general activities such as training credit officers on real estate appraisal and providing legal advice on facilitating mortgage financing.
- Environmental Category and Issues
This is an environmental review category C project. BoG will be required to apply IFC’s Exclusion List to commercial property mortgages and to loans for new construction, and ensure that construction loans and commercial properties comply with applicable environmental and social requirements of Georgia.
| Date SPI sent to InfoShop | January 11, 2000 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-7711
Fax: (202) 974-4384
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