MICROCAPITAL BRIEF: Symbiotics Issues $5m Sustainability Bond to Fund Microfinance Institution Crystal of Georgia

Symbiotics, a Switzerland-based impact investing platform, recently issued a bond whose proceeds are funding a three-year, unsecured loan to Crystal, a microfinance institution (MFI) in Georgia. The proceeds of the bond, Georgian lari equivalent to USD 5 million, are earmarked to fund green loans, which are sensitive to environmental concerns, as well as social loans, which are meant to boost employment. Both individuals and companies are eligible for green loans to increase “energy efficiency, renewable energy, clean transportation and sustainable agriculture.” Smaller firms will be eligible to apply for the social loans. Symbiotics is issuing the bond on its Micro, Small & Medium Enterprises Bonds platform, following its Sustainability, Social and Green Bond Framework. The bond will be listed on the Luxembourg Green Exchange, which meets the Green Bond Principles of the Switzerland-based International Capital Market Association.

Founded in 1995 as a humanitarian program, Crystal became licensed as an MFI in 2007. The institution provides remittances; bill-payment services; and loans for enterprise, housing and consumption. Crystal also recently started offering loans for those seeking to purchase “renewable energy systems, energy efficient (EE) systems, drip irrigation systems, environmentally friendly construction materials, in addition to electric and hybrid vehicles.” The microlender is 48-percent held by the Georgian NGO Crystal Fund, 38-percent by the agRIF fund of Belgium’s Incofin, 13-percent by a fund of US-based Developing World Markets and 2-percent by managers of the MFI. As of December 2019, Crystal reported a net annual operating loss of GEL 324,000 (USD 99,000) on total assets of GEL 337 million (USD 100 million). It services 100,000 customers via 48 branches in the country.

Symbiotics, founded in 2004, focuses on financing small and medium-sized enterprises (SMEs) as well as low- and middle-income households. It does this by providing for-profit investment intermediary and business services to investors in and practitioners of microenterprise and SME development. As of 2019, the company reported a direct investment portfolio of USD 2.3 billion, with its investees serving small businesses and households at “the base of the pyramid” in 77 emerging markets.

By Sophie Fiala, Research Associate

Sources and Additional Resources

Symbiotics press release
https://symbioticsgroup.com/news/press-release-symbiotics-launches-the-first-sustainability-bond-in-georgia-with-mfo-crystal-for-usd-5-million-in-local-currency-equivalent/

Crystal homepage
https://crystal.ge/

Crystal 2019 annual report
https://ir.crystal.ge/wp-content/uploads/2020/12/2019_MFO-Crystal_Annual-Report_ENG.pdf

International Capital Market Association Green Bond Principles
https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/

Symbiotics 2019 annual report
https://symbioticsgroup.com/wp-content/uploads/2020/06/Symbiotics-Annual-Report-2019.pdf

Symbiotics Social, Sustainability and Green bond framework
https://symbioticsgroup.com/wp-content/uploads/2020/06/Sustainability-Social-and-Green-Bond-framework-for-Symbiotics.pdf

Previous MicroCapital article on Symbiotics
https://www.microcapital.org/microcapital-brief-impact-investor-symbiotics-spins-off-consultancy-tameo/

Euronext homepage
https://www.euronext.com/

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