MICROCAPITAL BRIEF: Green for Growth Fund Loans $5m in Local Currency to TBC Leasing to Boost Energy Efficiency of SMEs in Georgia

The Green for Growth Fund (GGF), a Germany-based investment fund, recently loaned TBC Leasing, a member of Georgia’s Tbilisi Business Centre (TBC) Bank, approximately GEL 16 million (USD 5 million) to fund the leasing of equipment that will reduce the energy usage of small and medium-sized enterprises (SMEs) by a projected 13,380 megawatt hours.

“This investment will expand the company’s green portfolio with SME clients and thus contribute to a greener and more sustainable economic recovery in Georgia. What is more, expanding local-currency lending for these purposes helps ensure…they are safeguarded from the potential ups and downs in the exchange rate,” said GGF Chairperson Olaf Zymelka.

Founded in 2003, TBC Leasing has five branches in Georgia, serving 4,000 customers with a portfolio of GEL 300 million (USD 95.6 million). TBC Bank reports generating total revenue of GEL 802 million (USD 250 million) on assets of GEL 18 billion (USD 5.7 billion) during its 2019 fiscal year.

GGF was founded in 2009 by the German development bank Kreditanstalt für Wiederaufbau (KfW) and the EU’s European Investment Bank to invest in energy efficiency in emerging markets. GGF lends directly to renewable energy projects as well as to retail financial institutions, which then disburse the funds to households and businesses. The fund is a public-private partnership active in 19 markets in Europe, the Middle East and North Africa. As of the fiscal year ending in 2019, GGF had a committed investment portfolio totaling EUR 582 million (USD 683 million).

By Kate Finster, Research Associate

Sources and Additional Resources

GGF press release
https://www.ggf.lu/press/news/news-detail/ggf-ggf-and-tbc-leasing-expand-access-to-local-currency-finance-for-energy-efficiency-measures-in-georgia-40

TBC Leasing homepage
https://www.tbcleasing.ge

TBC Bank 2019 annual report
https://www.tbcbank.ge/web/documents/10184/422764/Annual+Report+2019.pdf

TBC Bank homepage
https://www.tbcbank.ge

GGF 2019 impact report
https://www.ggf.lu/fileadmin/user_upload/Publications/Impact_Reports/GreenforGrowthFund_ImpactReport_2019_web.pdf

GGF fact sheet on Georgia
https://www.ggf.lu/fileadmin/user_upload/Publications/Country_Fact_Sheets/GGF_Georgia_Fact_Sheet_H1_2020.pdf

GGF homepage
https://www.ggf.lu

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