📋 Tender Overview
SUMMARY
STATUS
Proposed
MEMBER
Georgia
SECTOR
Multi-sector
E&S CATEGORY
FI
PROJECT NUMBER
000971
FINANCING
PROPOSED FUNDING AMOUNT
USD100 million
FINANCING TYPE
Nonsovereign
TIMELINE
CONCEPT REVIEW
April 16, 2025
APPRAISAL REVIEW/FINAL REVIEW
July 21, 2025
OBJECTIVE
The Project aims to improve access to essential health and education services in Georgia, particularly in underserved areas, by financing infrastructure sub-projects through TBC Bank.
DESCRIPTION
The Project constitutes an up to USD100 million, three-year, senior unsecured loan to TBC Bank with two equal tranches, to be disbursed either in USD or in GEL. The proceeds of the loan would be used to finance sub-projects in the social infrastructure segment.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP) and its Environmental and Social Exclusion List (ESEL) apply to this Project. The Project is classified as Category FI, whereby AIIB delegates decision-making on the use of AIIB’s funds to the borrower, provided sub-loans comply with AIIB’s environmental and social (E&S) criteria and requirements, through a fit-for-purpose environmental and social management system (ESMS) that applies a robust E&S risk management (ESRM) approach, proportional to the risks and impacts of its projects. All sub-projects will be screened, categorized and assessed for E&S risks and no high-risk activities will be allowed using AIIB proceeds. AIIB’s loan will only support low to medium risk activities (as defined in AIIB’s ESP) in the health and education sectors, led by micro, small and medium sized enterprise (MSME) clients of TBC Bank.
Environmental and Social Instruments. TBC Bank has a robust environmental, social and governance (ESG) and Sustainability Strategy described in detail in its annual sustainability report and an internal risk appetite framework that determines, together with its exclusion list, the activities and sectors it invests in. TBC Bank’s ESMS / ESRM procedure, (Our Environmental Management System | TBC Bank) developed in collaboration and consultation with the EBRD and IFC, requires all MSME and Corporate loans to undergo screening, categorization, and assessment (due diligence) commensurate with the risks and impacts of each activity. No material gaps were identified between the TBC Bank’s ESMS / ESRM practices and AIIB’s requirements for FI projects, which are consistent with IFC and EBRD requirements, against which the system was developed. Given AIIB-supported activities will be of low risk, credit and E&S risk screenings and approvals are anticipated to only require internal review and assessment.
Environmental and Social Aspects. While sub-projects in the social sector are generally of lower risk than those in other sectors, common E&S risks and impacts that need to be managed, are linked to: (i) the design, implementation and management of life and fire safety systems; (ii
