MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $30m to Georgia’s Bank Republic for On-lending to Small, Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to support economic growth in developing countries, recently announced that it will provide a loan of USD 30 million to Bank Republic, which serves retail and corporate customers in Georgia as a subsidiary of the French financial services provider Société Générale. The proceeds of the loan are intended to be on-lent to small and medium-sized enterprises (SMEs) in the country. It is anticipated that the funding will contribute to job creation in Georgia as well as to the country’s economic growth.

Antoine Gabizon, the Chief Executive Officer of Bank Republic, said that “our cooperation with IFC will help us meet increasing customer demand for SME financing, significantly growing our SME portfolio”[1]. Jan van Bilsen, IFC’s regional manager for the South Caucasus, added that “creating opportunities for SMEs is a key way to advance development and reduce poverty, and it is a strategic priority for IFC. This support for Bank Republic, our long-time partner, furthers IFC’s efforts to support SMEs, a vital economic segment in Georgia”[1].

As of December 31, 2014, Bank Republic reported total assets of GEL 1.2 billion (USD 507 million), a gross loan portfolio of GEL 913 million (USD 383 million) and customer deposits of GEL 618 million (USD 260 million). As of June 30, 2015, the organization reported return on average assets of 3.2 percent and return on equity of 22 percent. As of June 30, 2015, Société Générale reported total assets of EUR 1.4 billion (USD 1.5 billion) with operations in 85 countries.

As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. As of 2014, IFC reported total assets of USD 84 billion, net income of USD 1.5 billion and return on assets of 1.8 percent. In Georgia, IFC has provided long-term funding of approximately USD 1 billion, contributed USD 300 million to the country under a trade finance program and supported 52 projects between 1995 and 2015. Bank Republic has received a total of USD 80 million from IFC as of 2015.

By Alíz Crowley, Research Associate

About Bank Republic

Established in 1991 in Georgia, Bank Republic is a member of the French financial services group Société Générale. The bank provides services to the retail and corporate markets through 39 branches in the country. As of December 31, 2014, Bank Republic reported total assets of GEL 1.2 billion (USD 507 million), a gross loan portfolio of GEL 913 million (USD 383 million) and customer deposits of GEL 618 million (USD 260 million). As of June 30, 2015, the organization reported return on average assets of 3.2 percent and return on equity of 22 percent.

About the International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. As of 2014, IFC reported total assets of USD 84 billion, net income of USD 1.5 billion and return on assets of 1.8 percent.

About Société Générale

Société Générale is a financial institution that was established in 1864 and is based in Paris. Société Générale offers retail and private banking, corporate and investment banking, and investment management services in 85 countries. As of June 30, 2015, Société Générale reported total assets of EUR 1.4 billion (USD 1.5 billion) with operations in 85 countries.

Sources and Additional Resources

[1] International Finance Corporation, News, IFC Loan to Bank Republic Boosts SMEs in Georgia

[2] Bank Republic, Financial Information, Annual Report 2014

[3] Société Générale, Financial Results, Q2 2015 Results

MicroCapital Universe Profile: Bank Republic

MicroCapital Universe Profile: International Finance Corporation (IFC)

MicroCapital Universe Profile: Société Générale

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