Swiss Investment Fund
for Emerging Markets

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Bank of Georgia JSC

Operating since 1994, Bank of Georgia (“BoG”) is a leading Georgian universal bank, serving c. 2.5m clients in retail, MSME and corporate segments through almost 300 branches and employing 5,800 employees. BoG is one of the largest providers of debt to micro, small and medium enterprises in Georgia, with USD 820m in loans to 218,000 clients in the MSME segment, accounting for 37% of the commercial lending to MSMEs in Georgia. Furthermore, the Bank has developed financial products and lending practices to specifically serve women-led businesses, which will ultimately increase the participation of women in Georgia’s economy.

Bank of Georgia JSC

Operating since 1994, Bank of Georgia (“BoG”) is a leading Georgian universal bank, serving c. 2.5m clients in retail, MSME and corporate segments through almost 300 branches and employing 5,800 employees. BoG is one of the largest providers of debt to micro, small and medium enterprises in Georgia, with USD 820m in loans to 218,000 clients in the MSME segment, accounting for 37% of the commercial lending to MSMEs in Georgia. Furthermore, the Bank has developed financial products and lending practices to specifically serve women-led businesses, which will ultimately increase the participation of women in Georgia’s economy.

About the fund

To tackle market failures and stimulate the creation and growth of small companies, the Government of Georgia took in 2015 a strategic decision to improve the business environment. This decision has, in part, contributed to the SME sector representing a key pillar of the Georgian economy. As of March 2019, SMEs accounted for 53% of the business sector’s total turnover and 63% of the total work force.

SIFEM’s subordinated loan is part of an FMO-led syndication. This financing will not only strengthen the capital base of BoG to enable its sustainable growth but also contribute to the economic development and growth of Georgia by promoting access to finance for MSMEs, supporting job creation and generating additional tax revenues.

Reference code
2019-07
Status
Active
Date of commmitment
December 2019
Date of exit
-
SIFEM commitment
USD
10,000,000
Asset class
Private Debt
Investment strategy
Direct Investment