IFC Invests $150M in TBC Bank to Enhance SME and Climate Financing in Georgia

The funding will be allocated specifically to TBC Bank's SME clients, with half dedicated to renewable energy and energy-efficient projects.

The International Finance Corporation (IFC) is investing $150 million in TBC Bank, Georgia's largest bank, to enhance access to finance for small and medium enterprises (SMEs) and strengthen the country’s climate finance market. This investment addresses a significant barrier for smaller businesses in Georgia, as identified in the 2023 World Bank Group's Enterprise Surveys.

The funding will be allocated specifically to TBC Bank's SME clients, with half dedicated to renewable energy and energy-efficient projects. The initiative aims to mitigate up to 30,000 tons of CO2 equivalent annually by 2028, contributing to Georgia's climate goals.

IFC's investment is set to expand TBC Bank’s SME and climate finance portfolios, promoting best practices in sustainable lending and supporting the growth of the country’s climate finance market. This move aligns with IFC’s broader strategy to bolster economic growth and sustainability in Georgia.

Vakhtang Butskhrikidze, CEO of JSC TBC Bank, highlighted the significance of the partnership: “The signing of this facility is a milestone in our collaboration with IFC, reflecting our shared commitment to sustainable development. This facility will enhance TBC’s efforts to support SMEs and promote climate-friendly projects across Georgia. We are grateful to IFC and look forward to future successful collaborations.”

Ivana Fernandes Duarte, IFC's Regional Manager for the South Caucasus, emphasized the investment’s impact: “This investment reaffirms IFC’s commitment to advancing economic growth and sustainability in Georgia. By leveraging TBC Bank’s extensive digital channels and branch network, we aim to drive significant progress in SME and climate financing, fostering a more resilient and sustainable economy.”

Since 1995, IFC has invested around $2 billion in Georgia, with nearly $1 billion mobilized from partners for projects across financial services, agribusiness, manufacturing, and infrastructure. The corporation has also supported over $394 million in trade through its trade finance program and implemented various advisory projects focused on private sector development.