The European Investment Bank (EIB, the EU bank) has signed a €50 million loan agreement with the Bank of Georgia to support small and medium-sized enterprises (SMEs) and mid-caps, the EIB announced today. Under the agreement, the EIB and Bank of Georgia will direct a minimum of 30% of the loan towards green investments. It is the first EIB loan intermediated by the Bank of Georgia with such a thematic dedication.
The loan is being provided by EIB Global (the arm of the EIB working beyond the European Union) and is the first tranche of a €120 million EIB loan program that is expected to benefit more than 160 companies and sustain over 14,000 jobs. Bank of Georgia will double the EIB commitment by lending an equivalent amount of its resources.
The loan aims to improve access to finance with long-term funding on attractive terms and conditions, with the option to make such funding available in local currency to help businesses avoid exchange rate risks.
