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TBC Leasing 3

Georgia | Financial Institutions

Identification Code:: OP/14/0026
Total Operation Cost:: 4.000.000 USD
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

4.000.000 USD – 19 Sep 2014
: BSTDB Signed Amount – Signed Date

4.000.000 USD – 06 Nov 2014
: Status:
Completed
Description and Purpose of the Operation:: TBC Leasing SMEL 3
Countries of Operation:: Georgia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: TBC Leasing was founded on 22 September, 2003, by TBC Bank, one of the leading Georgian financial institutions. The principal business of TBC Leasing is to provide financial leases to companies within Georgia. The Company has been carrying out active operations since January 2004.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: This operation represents a continuation of two previous SME Leasing Facilities to the client. Thus, economic benefits of the project may be expected to be the same as for the previous operations, especially in view of the fact that the operation is of the same size again. As far as qualifying these benefits, they are similar to those that general accrue from SME facilities. As such, the operation is expected to continue to have favorable albeit modest economic benefits for the Georgian economy, the most relevant being the tax revenue gains from economic activity, increase in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy.
Environmental Classification and Impact:: TBC Leasing is engaged in SME leasing in Georgia by providing its clients lease financing. SME leasing is normally not likely to generate significant negative environmental and social impact. Nevertheless, there are certain environmental and social risks associated with such financing for which the FI needs to have the appropriate capability to ensure that these risks are properly assessed and mitigated. The Environmental and Social Assessment of TBC Leasing focused primarily on the existing environmental and social management arrangements, such as policies, procedures, rules and responsibilities, and whether the company is engaged in activities prohibited by the Bank as stipulated in the BSTDB Environmental and Social Exclusion List. The assessment concluded that TBC Leasing has instituted a functioning environmental and social management system which was found commensurable with the level of environmental and social risks associated with its SME financing activities. The Company reported that it is not engaged in financing any activities contained in the Bank’s Environmental and Social Exclusion List. Overall, it is considered that the Operation will contribute to promoting small and medium businesses in Georgia and positively impact on poverty alleviation, stimulate self-employment, create new jobs and generate revenues. For the purpose of this Operation TBC Leasing will be required to continue to adhere to the established internal rules and procedures for environmental and social risk assessment; remain compliant with subject national legislation in effect; observe the BSTDB Environmental and Social Exclusion List; and submit annual environmental and social performance reports.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org