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TBC Leasing Facility I

Georgia | Financial Institutions

Identification Code:: OP/07/0637
Total Operation Cost:: — USD
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

3.000.000 USD – 27 Jul 2007
: BSTDB Signed Amount – Signed Date

3.000.000 USD – 30 Nov 2007
: Status:
Completed
Description and Purpose of the Operation:: BSTDB extends a SME leasing facility to TBC Leasing to be used exclusively for the purpose of financing eligible leases to micro, small and medium sized companies in Georgia. BSTDB's loan will provide additional funding to the company in order to finance lease transactions.
Countries of Operation:: Georgia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: TBC Leasing (established in 2003) is the first and largest leasing company in Georgia with a 70% market share. Established and supported by TBC Bank, a leading bank in Georgia and a long partner of BSTDB, the company quickly managed to gain significant market share by offering financing leases of vehicles and equipment for road construction, textiles, publishing, retail services and other sectors.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: By working with TBC Leasing, BSTDB will be able to extend medium term funding to numerous small and medium-sized enterprises in Georgia. It is also expected to contribute to job creation, income generation, improved company infrastructure increased trade turnover, including between member countries.
Environmental Classification and Impact:: Financing through FIs implies certain Environmental, Health & Safety (EH&S) risks and impacts. Usually these are associated with the fact that FIs lack appropriate environmental policies and procedures, which would ensure a qualitative EH&S assessment of the sub-loans, and therefore their legal compliance with local and lending institutions’ requirements. If this is the case then the Borrower will need to develop an appropriate Environmental Policy and Environmental Assessment Procedures and fully integrate them in the overall portfolio management. The Loan Agreement requires the Borrower to: (1) undertake environmental assessment of the sub-loans with medium and high environmental risk, as well as ensure proper monitoring of these operations; (2) ensure compliance of the sub-loans with applicable national EH&S requirements; (3) continue to adhere to the Bank’s Environmental Exclusion List and Negative List of Goods; (4) submit annual EH&S performance reports.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org