Project Description

A senior unsecured local currency facility under the Financial Intermediaries Framework (“FIF”) in an amount of up to USD 8.0 million equivalent (EUR 7.6mln) will be provided in favor of JSC MFO Crystal.

Project Objectives

The project has been implemented under the Financial Intermediaries Framework which is in line with the FIF policy statement with funds earmarked for lending to private micro, small and medium enterprises (MSMEs) in Georgia. The transaction will help Georgia’s leading microfinance institution by (i) diversifying its funding structure through medium-term local currency (LCY) resources and (ii) growing its MSME loan portfolio. By increasing

Transfer effect

ETI Score: 60

The proposed MSME loan supports the objectives of the Financial Intermediation Framework, Competitive And flexible Transfer features

Competitive: The company will expand its MSME portfolio with a focus on reaching out to regional clients and attracting new lenders.

Flexibility: The Company will maintain prudent lending practices and adequate portfolio quality.

Client Information

MICRO FINANCE ORGANIZATION CRYSTAL JSC

JSC MFO Crystal is a leading non-bank microfinance institution in Georgia, operating primarily in rural areas and focusing on micro, small and medium enterprises (MSMEs) as well as the agricultural sector.

Summary of EBRD Finance

USD 8,000,000.00

Total project cost

USD 8,000,000.00

Relativity

Debt relatedness will arise from:

Financial Structure: The EBRD offers local currency financing on terms that are not readily available in the market and at a tenor that is higher than the market average and necessary for the construction of the project.

Standard Setting: Helping Projects and Clients Achieve High Quality: MSME policy statement, ESD requirements and financial agreements will ensure proper utilization of loan proceeds, adherence to best E&S practices and financial risk management.

Environmental and Social Summary

Classification FI (ESP 2019). MFO Crystal is a new client of the EBRD. Environmental and Social (E&S) due diligence is conducted based on a questionnaire review, publicly available information, and follow-up communication with the client. MFO Crystal has adopted IFC performance standards for its E&S risk management, established an E&S policy, which is being further improved, and publishes its annual reports including E&S performance on its website. The MFO is a signatory to the Crystal Smart Campaign, a global initiative for responsible financial services for disadvantaged consumers. MFO Crystal must maintain its own E&S management system to assess, manage and monitor the environmental and social risks and impacts associated with these subprojects. MFO Crystal is required to comply with the EBRD’s Performance Requirements (PRs) 2, 4 and 9, including exclusions and reference lists introduced with the EBRD’s E&S Policy 2019, consistent with the EBRD’s E&S Risk Management Guidance. , and submit an annual E&S report. Sub-lenders financed through Bank MFO Crystal’s loan must comply with national environmental, health, safety and labor requirements.

If EBRD financing can be used to finance solar sub-projects, these sub-projects will be managed in accordance with the ‘Proposed Management Approach to Solar Supply Chain Risk Management’ (CS/FO/21-35) and this Any guidance developed under the procedure shall be followed.

Technical support and grant financing

None.

Company contact information

Elijah Rivia
[email protected]
+995577300414
https://ir.crystal.ge/
10th Pavilion, 118 A. Tsereteli str, Tbilisi

PSD last updated.

30 December 2024

Understanding Transfer

More information on the EBRD’s approach to measuring transition impacts is available here.

Business opportunities

For business opportunities or acquisitions, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Email: [email protected]

For public sector projects, see EBRD Procurement:

Tel: +44 20 7338 6794
Email: [email protected]

General Inquiries

Specific inquiries can be made using the EBRD Inquiries form.

Environmental and Social Policy (ESP)

The ESP and related Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promote “environmentally sound and sustainable development”. Specific to comply with the applicable requirements of national laws on public information and consultation for clients in ESP and PRs, as well as establishing a grievance mechanism to receive and resolve stakeholders’ concerns and complaints. Provisions include, in particular, the environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD may additionally require its clients to disclose information about the risks and impacts arising from projects or to meaningfully consult with stakeholders and consider them. Demands to do and answer. opinion

Further information on the EBRD’s approach in this regard is provided in the ESP.

Integrity and Compliance

EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that international best practices are followed. The highest standards of integrity should be applied to all activities of the Bank. Due diligence is exercised on all bank clients to ensure that the Projects Bank is of unacceptable integrity or reputation. do not present risks. The Bank believes that identifying and resolving issues at the project appraisal approval stage ensures the integrity of the Bank’s transactions. is the most effective means of making OCCO plays a key role in these security efforts, and also helps monitor integrity risks in projects after investment.

OCCO is also responsible for investigating allegations of fraud, corruption and mismanagement in EBRD-financed projects. Any person, inside or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email at [email protected]. All reported cases will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports may be made in any language of the Bank or the countries in which the Bank operates. Information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations after it enters into force on 1 January 2020. . Please visit the Access to Information Policy page to find out. What information is available from the EBRD website.

Specific requests for information can be made using the EBRD Inquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the client or the bank are unsuccessful (e.g. through the client’s project-level grievance procedure or through direct contact with bank management), individuals And organizations can seek to address their concerns through the EBRD. Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or likely to cause) damage. The mechanism aims to: support dialogue between project stakeholders to address environmental, social and public disclosure issues; To determine whether the bank has complied with its environmental and social policy or the project-specific provisions of its access to information policy. and where applicable, to remedy any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism web page to learn more about IPAM and its mandate. How to submit a request for review; Or contact IPAM via email at [email protected] for guidance and more information about IPAM and how to submit an application.