By Rezo Bitsadze
Highlights
- EBRD and GCF provide financial package of US$ 25 million to TBC Bank in Georgia
- New GEFF investment aimed at climate change mitigation and adaptation projects
- Facility to support TBC Bank in promoting women's access to climate finance
The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are promoting green lending in Georgia by organising a financial package of US$ 25 million ( 23.04 million) for TBC Bank, one of the country's most active lenders for the green economy.
This is the second facility the EBRD has provided to TBC under the Green Economy Financing Facility (GEFF) regional framework. The EBRD will provide 75 per cent of the loan, with the GCF financing the remaining 25 per cent.
TBC Bank will use the proceeds to support Georgian individuals and businesses willing to invest in climate mitigation and adaptation technologies and services. It will also aim to be inclusive in its on-lending, allocating at least 10 per cent of the funds to women-led or -owned businesses (retail clients, small and medium-sized enterprises and larger companies).
As part of the financial package, Austria and the GCF will support the preparation, implementation and monitoring of the project. The funds will also be used to raise awareness on gender-responsive green finance.
The loan agreement was signed at the EBRD's 2024 Annual Meeting in Yerevan by Francis Malige, the EBRD's Managing Director for Financial Institutions, who said: "Investing in green lending is not just about mitigating climate change; it's about securing a sustainable future for Georgia. Together with our partners TBC and the Green Climate Fund, we're empowering communities and businesses to build resilience."
TBC Bank Deputy General Director Giorgi Megrelishvili said: "A more inclusive, greener economic sector is crucial to the development and resilience of Georgia's economy and society. The facility reflects our institution's strong commitment to supporting the sustainable growth of local businesses and reaffirms TBC's leadership position in green and sustainable lending."
TBC Bank Georgia, a long-standing partner of the EBRD, is one of the largest financial institutions in the country, with a leading retail and corporate banking franchise. The bank is owned by UK-incorporated public holding company TBC Bank Group, which is listed on the London Stock Exchange.
The facility is the latest project in Georgia under the GEFF programme, which operates through a network of 191 local banks in 29 countries, supported by 6.3 billion of EBRD finance. The programme has enabled more than 231,000 clients to avoid more than 10 million tonnes of CO2 emissions per year.
To date, the EBRD has invested almost 5.3 billion in 296 projects in Georgia's financial, corporate, infrastructural and energy sectors, with 83 per cent of those investments in the private sector.
