IFC is investing $150 million in TBC Bank, Georgia’s largest bank, to boost access to finance for its small and medium enterprise (SME) portfolio and bolster the country’s climate finance market.
According to the 2023 World Bank Group’s Enterprise Surveys, access to finance remains one of the major obstacles for smaller businesses in Georgia. IFC’s support to TBC Bank aims to address that challenge, with all of the funding targeted to the bank’s SME clients and half earmarked for renewable energy and energy-efficient SMEs. This could help avoid up to 30,000 tons of CO2 equivalent per year by 2028.
IFC’s financing is expected to help TBC Bank further grow its SME and climate finance portfolios. In addition, the project will help strengthen Georgia’s climate finance market by promoting best practices in sustainable lending.
“The signing of this facility is a significant milestone in partnership with IFC and reflects our shared commitment to promote the sustainable development of the Georgian economy. The facility will not only bolster TBC’s efforts to support SMEs, but also enable us to play a critical role in promoting climate-friendly projects across Georgia. We would like to express our gratitude to IFC, and we look forward to working on many more successful deals in the future,” said Vakhtang Butskhrikidze, CEO of JSC TBC Bank.
“This investment underscores IFC’s commitment to fostering economic growth and sustainability in Georgia. By partnering with TBC Bank and leveraging its excellent digital channels and extensive branch network, we aim to drive significant advancements in both SME and climate financing, contributing to a more resilient and sustainable economy,” said Ivana Fernandes Duarte, IFC’s Regional Manager for the South Caucasus.
Helping local banks tackle the key challenge of increasing access to finance for businesses, especially smaller ones, is one of IFC’s priorities in Georgia. To boost private sector growth in Georgia, IFC has provided around $2 billion in long-term financing since 1995, including nearly $1 billion mobilized from partners, in 62 projects in financial services, agribusiness, manufacturing, and infrastructure. IFC has also supported over $394 million in trade through its trade finance program and implemented several advisory projects focused on private sector development.
This article was initially published by IFC.
