IFC Partners With TBC Bank To Boost Climate Finance In Georgia

(MENAFN- Trend News Agency) BAKU, Azerbaijan, August 2. In a strategic move to bolster Georgia's financial landscape, the International Finance Corporation (IFC) is investing $150 million in TBC Bank, the nation's largest bank, Trend reports via the IFC.

This investment aims to significantly improve access to finance for small and medium enterprises (SMEs) and strengthen the country's burgeoning climate finance market.

The 2023 World Bank Group's Enterprise Surveys highlight that access to finance remains a significant hurdle for smaller businesses in Georgia. Addressing this challenge, IFC's funding will be directed entirely towards TBC Bank's SME clients, with half of the amount specifically allocated for renewable energy and energy-efficient SMEs. This initiative is expected to help avoid up to 30,000 tons of CO2 equivalent annually by 2028.

This financial boost from IFC is set to expand TBC Bank's SME and climate finance portfolios. Moreover, the project aims to reinforce Georgia's climate finance market by promoting best practices in sustainable lending.

Since 1995, IFC has played a crucial role in fostering private sector growth in Georgia. The corporation has provided around $2 billion in long-term financing across 62 projects in various sectors, including financial services, agribusiness, manufacturing, and infrastructure. This includes nearly $1 billion mobilized from partners. Additionally, IFC has supported over $394 million in trade through its trade finance program and executed several advisory projects focused on private sector development.

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