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MFO Crystal

Georgia | Financial Institutions

Identification Code:: OP/18/0059
Total Operation Cost:: 15.000.000 GEL
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

15.000.000 GEL – 08 Feb 2019
: BSTDB Signed Amount – Signed Date

15.000.000 GEL – 30 May 2019
: Status:
Completed
Description and Purpose of the Operation:: MFO Crystal
Countries of Operation:: Georgia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Local Currency MSME Facility to Crystal, GE
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: By focusing on SMEs, the operation is consistent with the BSTDB’s Medium Term Strategy and Business Plan 2015-18. While the MTSBP seeks to limit institutional growth in the financial sector, where BSTDB is already highly exposed, it considers SME operations to be a priority due to their high potential development impact. The operation contains no apparent direct regional cooperation elements, insofar as it is not yet known who will be the beneficiaries of the loan facility, and whether they are engaged in cross-border activities with neighboring (BSEC) countries. If entities that conduct export activities were to use the lending facility, it would help increase trade links with neighboring states to that extent.
Environmental Classification and Impact:: Microfinancing is normally not likely to generate any significant negative environmental and social (E&S) impacts. There are, however certain E&S risks associated with microfinancing for which the FI needs to be capable to ensure that these are properly assessed and mitigated. The E&S due diligence of the Borrower focused primarily on the existing E&S management system, such as policies, procedures, rules and responsibilities and how well this is integrated in the general portfolio management to ensure that the sub-loans financed are properly assessed; are compliant with the local legal requirements; and meet the requirements of the BSTDB E&S Exclusion List. The assessment concludes that the Borrower has recently instituted a basic E&S management system, which is commensurable with the level of E&S risks associated with its microfinance activities. This includes procedures for transaction screening and categorization, assessment, mitigation and control. The Borrower reported that it is not engaged in financing any activities contained in the Bank’s E&S Exclusion List.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org