MICROCAPITAL BRIEF: Terabank Georgia Borrowing $7m from EIB to Aid MSMEs in Adjusting to COVID-19 Pandemic

The EU’s European Investment Bank (EIB) recently opened a credit line of EUR 6 million (USD 6.8 million) – usable in synthetic Georgian lari – for Terabank Georgia, which is owned by the UAE-based Abu Dhabi Group. Terabank, which focuses on retail customers as well as small and medium-sized enterprises (SMEs), seeks to use the credit line to help its clients sustain jobs and maintain liquidity.

EIB is pairing the loan with technical assistance to help Terabank “improve and expand its offer available to local small businesses” under EIB’s SME Outreach Initiative, which supports smaller banks in Georgia in designing products that meet the needs of microenterprises and SMEs.

Founded in 1999, Terabank is headquartered in Tbilisi and operates 18 branches in Georgia. Its services include deposits, loans, payment cards, transfers, payroll processing and trade operations. Its loan products include offerings for consumption, education, housing, vehicles, farming, working capital and asset purchases. As of June 2021, Terabank reported total assets of GEL 1.3 billion (USD 412 million), a gross loan portfolio of GEL 896 million (USD 284 million) and total deposits of GEL 860 million (USD 273 million).

EIB, founded in 1958, is “focused on innovation, SMEs, infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution assists its clients “in project implementation and the modernization of public policies [via] technical and financial expertise and advisory services.” As of December 2020, its total assets amounted to EUR 554 billion (USD 675 billion) with disbursements during the preceding year totaling EUR 58.3 billion (USD 71 billion).

By Arin Atluri, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2021-347-team-europe-eib-provides-eur6-million-to-terabank-for-faster-covid-19-recovery-for-georgian-micro-small-and-medium-sized-enterprises

Terabank Georgia homepage
https://www.terabank.ge/

Terabank 2021 financials
https://www.terabank.ge/en/1245

EIB homepage
https://www.eib.org/

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