Tbilvino II

completed

Tbilvino is a Georgian wine producer / exporter which was established as a state owned company and privatized in 1995. Tbilvino is an existing IFC client and the Company produces over 40 different types of red and white wine. Previous investment was to improve product quality and safety standards and strengthen internal control processes through each link of the supply chain by developing grape collecting and crushing facilities which were rented before the project implementation and to increase capacity of wine holding refrigeration tanks. - hyperlink-ifcext.ifc.org/ifcext/spiwebsite1.nsf/ProjectDisplay/SPI_DP30992). Tbilvino is committing an additional US$6.8 mn investment program in 2014-16 of which US$2.0 mn will be financed by IFC’s A loan. The scope of this new project encompass: (i) developing its own vineyards (around 300 ha) to ensure grape supply and hedge grape price fluctuation risk; (ii) providing working capital to procure grape from farmers for 2014 harvest season and (iii) financing the Company’s other capital expenditures. The Company expects to undertake the first harvest in its vineyard within 4-5 years and estimates that it will produce around 30-35% of its grape requirements.