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Bank of Georgia (local currency loan)

Georgia | Financial Institutions

Identification Code:: OP/17/0059
Total Operation Cost:: 75.000.000 GEL
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

75.000.000 GEL – 17 Nov 2017
: BSTDB Signed Amount – Signed Date

75.000.000 GEL – 26 Mar 2018
: Status:
Completed
Description and Purpose of the Operation:: Bank of Georgia (local currency loan)
Countries of Operation:: Georgia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Bank of Georgia, 2nd loan in local currency
Co-Financers/Participants:: N/A
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: This operation involves a GEL 75 million lending facility with the Bank of Georgia, for on-lending to eligible small and medium sized enterprises (SMEs). Economically, it is expected to have modest but favorable benefits for the Georgian economy, the most relevant being additional tax revenue gains from increased economic activity resulting from the financing provided, increases in employment, and multiplier effects for other parts of the economy. Since it is a local currency operation accompanied by issuance of a GEL denominated bond by BSTDB, the operation is innovative and will have a high demonstration impact. In addition, it will have benefits that result from local bond issuance such as no foreign exchange risk for the borrowers, and a modest but positive strengthening and deepening of the domestic financial market.
Environmental Classification and Impact:: BOG has developed and implemented a comprehensive environmental and social (E&S) management system. It consists of the E&S Policy and the E&S risk management procedures, which are compliant with BSTDB's requirements towards financial intermediaries. The system outlines the main policy statements of the Borrower and defines the procedures for the E&S risk assessment process, decision making, monitoring, as well as the assignment of responsibilities. Bank of Georgia has also developed procedures for ensuring compliance with IFIs E&S Exclusion Lists. Overall, the E&S management system is well-integrated in the credit cycle and is applied systematically to the entire portfolio. In terms of the internal capacity for ensuring the proper implementation of the E&S management system, this has been assessed as appropriate. The overall responsibilities for E&S risk assessment is assigned to the Credit Risks Management Department, which employs an E&S expert. In addition to that the credit risk managers, credit officers and corporate bankers are also actively involved in the implementation of the Borrower's E&S management system.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org