Bank of Georgia enters green, sustainable loans totaling €95 million

By Mary Katherine Stinson

Lexington, Ky., Dec. 28 – Bank of Georgia Group plc announced that subsidiary JSC Bank of Georgia entered facility and loan agreements from three funding sources totaling €95 million, according to multiple notices.

The agreements consist of a €50 million multicurrency loan agreement with the European Investment Bank, a €25 million subordinated facility agreement (tier-2) with the Green for Growth Fund, Southeast Europe SA, SICAV-SIF and a €20 million subordinated facility agreement (tier-2) with the European Fund for Southeast Europe SA, SICAV-SIF.

The EIB facility has a maturity of up to seven years and will be used to finance investment projects promoted by small and medium-sized and mid-capitalization enterprises in Georgia. Under the EIB agreement, Bank of Georgia will direct at least 30% of the loan to green lending. It is supported by the Greening the Financial Systems technical assistance program, funded by the German government’s International Climate Initiative.

The Green for Growth facility has a green component. The European Fund for Southeast Europe facility has a component for sustainable economic activities or women majority-owned or led MSMEs through which Bank of Georgia will aim, on a best-efforts basis, to identify and apply predefined amounts to eligible investments. The maturity of these loans is 10 years.

The group is a Tbilisi, Georgia-based retail lender.

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