Project Description

Subordinated loan in the amount of USD 30 mln to be provided to TBC Bank (‘TBC’). The proceeds of the subordinated loan will be used to strengthen capital structure of the bank.

Project Objectives

The project will help optimize the capital structure and support resilience of the systemic bank in Georgia, one of the largest financial institutions in the country, supporting sustained growth in its lending.

As part of the project, TBC will become the first Partner Financial Institution (‘PFI’) in the Caucasus region to develop Paris Alignment transition plan and to commit to a multi-year cooperation with EBRD on the Paris Alignment. The transition plan, as defined in the EBRD’s Paris Alignment Methodology for indirect finance, will set out credible milestones to demonstrate that the PFI is on a trajectory to become aligned with the Paris Agreement goals in a timeframe consistent with the bank’s ESG agenda.

Transition Impact

ETI score: 73

The transaction will support the Well-Governed quality as TBC will commit to develop a transition plan aiming to progressively align its business practices with the goals of the Paris Agreement.

The project will also contribute to the Resilient quality by reinforcing TBC’s capacity for growth, optimising the capital structure of the bank and ultimately increasing its long-term resilience.

Client Information

TBC BANK JSC

TBC Bank (“TBC”) is a leading universal bank in Georgia holding more than one third of market share in total banking assets, loan and deposit portfolios in Georgia. It offers a full range of products and services (including FX transactions, non-financial services to support business development, as well as leasing, brokerage and investment banking via its subsidiaries) to the retail, corporate and MSME clients through its wide distribution network of over 140 branches and digital channels. 

EBRD Finance Summary

USD 30,000,000.00

Total Project Cost

USD 30,000,000.00

Additionality

Key sources of additionality under the project are:

(i) Risk mitigation: EBRD helps the bank to mitigate transition risks and take climate action, such as to move along a low carbon transition pathway.

(ii) Standard-setting: TBC seeks/makes use of the EBRD expertise on corporate governance improvements, including for climate risk management.

(iii) Innovative financing structures and/or instruments: EBRD offers an innovative financing structure (e.g. Basel III compliant bail-in-able subordinated debt). 

Environmental and Social Summary

Categorised FI (ESP 2019). TBC bank is a long-standing client of EBRD and compliance with, and reporting on, the Bank requirements have been good in the context of the existing and previous projects.

Technical Cooperation and Grant Financing

TC: will be available to support the development by TBC of the Transition Plan and/or implementation of its specific components. TC will be procured and funded under the EBRD’s Corporate Climate Governance (CCG) Client Support Facility, funded by the EBRD Shareholders Special Fund

Company Contact Information

Ketevan Bitskinashvili
TBC-IFM@tbcbank.com.ge
+(995 32) 227 27 27
https://tbcbankgroup.com/
7 Marjanishvili St. Tbilisi, Georgia 0102

PSD last updated

07 Aug 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.