MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $10m to BasisBank of Georgia for On-lending to Small, Medium-sized Enterprises (SMEs); Energy Efficiency Projects

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, has announced that it is “deepening its partnership”[1] with Georgia’s BasisBank by disbursing it a credit package of USD 31.5 million. The aim of the package is to fund small and medium-sized enterprises (SMEs), international trade transactions and energy efficiency projects. The credit package will include a tranche of up to USD 20 million for the financing of corporates and another tranche of up to USD 10 million for the funding of SMEs. It is anticipated that loans will be on-lent to local borrowers to “finance acquisitions, expansion or modernization, and working capital needs”[1]. A credit line of unspecified size will also be established to allow BasisBank to finance energy efficiency projects for the first time.

Nick Tesseyman, the managing director of the financial institutions team of EBRD, said that “we are very pleased to sign this package today as it will allow us to further reinforce a strong partner and thus also deepen the EBRD’s support for the Georgian economy […]”[1].

EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of that year. Since 1992 EBRD has been active in Georgia, where it focuses on the development of the private sector and on the energy, infrastructure, logistics, telecommunications and financial sectors. BasisBank reported total assets of GEL 579.7 million (USD 246.4 million) as of December 31, 2014. It is majority-held by China’s Xinjiang Hualing Industry & Trade Group.

By Alíz Crowley, Research Associate

About BasisBank

BasisBank is a commercial retail bank in Georgia that was founded in 1993. As of 2014, the Xinjiang Hualing Industry & Trade Group, a China-based organization that offers building material trading services, holds 92.98 percent of the shares of BasisBank. Mi Zaiqi, the vice chairman of the supervisory board of BasisBank, holds the remaining 7.02 percent of the organization’s share capital. BasisBank has 18 branches in Georgia. The institution reported total assets of GEL 579.7 million (USD 246.4 million) as of December 31, 2014.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of that year.

[1] European Bank for Reconstruction and Development (EBRD), EBRD and Georgia’s BasisBank deepen cooperation

[2] BasisBank, 2014 Annual Report

MicroCapital, April 15, 2015, European Bank for Reconstruction and Development (EBRD) to Loan $32m to Tunisia’s Banque de Tunisie for On-Lending to Micro, Small, Medium-sized Enterprises (MSMEs); $3.2m to Support Women-Led SMEs in Kosovo

MicroCapital, March 13, 2015, Bank al Etihad Borrowing $20m from European Bank for Reconstruction and Development (EBRD) for Micro, Small, Medium-Sized Enterprises (MSMEs) in Jordan

MicroCapital, March 12, 2015, EBRD Loans $9m – Part in Local Currency – to FINCA, AccessBank for MSMEs in Tajikistan

MicroCapital Universe Profile: BasisBank

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: