ProCredit Georgia - Syndicated Loan

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The proposed project is an A/B syndicated senior loan to ProCredit Bank (PCBG), Georgia for on-lending to private micro and small enterprises (‘MSEs’) across Georgia for up to the aggregate amount of USD 15 million (EUR 12.5 million). The Bank syndicate USD 7 million (EUR 5.9 million) on a best effort basis. International Cooperation and Development Fund (‘ICDF’), Taipei, China will be invited to participate in the A-Loan from its contribution to the ‘Small Business Account’ under FIISF. Transition impact will be achieved through the strengthening of the leading local bank which focuses on reaching micro and small-size enterprises through provision of the loan facility. The proposed loan facility will also help PCB Georgia to further expand its services to the regions outside of the capital city. A syndicated feature of the credit line will open an international commercial syndication market to PCB Georgia for the first time and creates a viable structure to direct commercial resources to MSE financing in Georgia. ProCredit Bank (PCB) Georgia was established in May 1999 as a micro enterprise bank by IFC, the German-Georgian Foundation for the Promotion of Private Sector Development (“the Foundation”), FMO, IMI and four local banks. EBRD became a shareholder by acquiring a 6% stake from the Foundation in late 2000. PCB was set up with the objective of providing financial services on a countrywide basis, specifically tailored to the demand of the target group of private micro and small enterprises (MSEs) in Georgia. Currently ProCredit Bank ranks 5th among the Georgian banks by total assets and 3rd by the size of its net loan portfolio. PCB is the clear market leader in providing the financial services to MSEs via its 24 branches and outlets all over Georgia. Up to USD 10 million of proposed syndicated loan. USD 15 million. The PCB Georgia is an existing client of the Bank and is familiar with and in full compliance with the EBRD Environmental Procedures for Financial Intermediaries, which include: compliance with applicable national environmental, health, safety and labour requirements; adherence to the Environmental Exclusion and Referral Lists; and submission of annual environmental reports to the Bank. PCB Georgia submits Annual Environmental Reports. PCB Georgia’s staff has also participated in recent environmental training for Georgian FIs. USD 1.5 million has been provided to PCB Georgia by EBRD (provided by USAID and BP Exploration (Caspian Sea)) for the management support, capacity building, the expansion of branch network and provision of MSE finance in Georgia. ProCredit Bank Georgia Philip Sigwart, General Manager Tel: +995 (32) 202222 Fax: +995 99 979 871 E-mail: p.sigwart@procreditbank.ge Website: www.procreditbank.ge