The Asian Development Bank and Credo Bank signed a loan agreement for 65 million lari, which is equivalent to approximately $25 million. The loan will support onlending to micro, small and medium-sized businesses (MSMEs), focusing on women borrowers who are involved in agricultural production, processing and trade.
“Women make up over a third in the country’s agricultural employment, and own more than a third of its agricultural holdings. Yet they are underserved when it comes to financial assistance.” Credo is unique in its focus on closing this funding gap,” said ADB Director-General for Private Sector Operations Suzanne Gaboury. “This project will also promote domestic food production as well as import substitution in order to enhance Georgia‘s food security.”
A technical assistance grant up to $700,000.00 will be provided to facilitate Credo’s rural outreach. This will include expanding its digital infrastructure, and promoting climate resilient farming practices to its clients. The grant will be used to support initiatives that improve women’s access to financial literacy and financial literacy in remote villages, and improve rural women’s digital and financial literacy.
ADB’s financing will support Credo with long-term local currency funding, which will help to avoid foreign currency exposure and risk. ADB will issue local currency bond to fund the loan in order to support the local capital markets.
“We are grateful for the strategic partnership we have had with the Asian Development Bank over the years. Over the years, they have been instrumental in our growth and development through their unwavering commitment to over 185 millions lari worth of total investments. This transaction is a milestone as it will empower women entrepreneurs in agriculture, and this particular transaction will be a significant landmark,” said Credo Bank’s Chief Executive Officer Zaza Pirtzkhelava. The substantial technical assistance will enhance the bank’s digitalization efforts and promote climate-resilient agriculture.
Credo is Georgia’s fifth largest commercial bank. It has 87 branches, a digital infrastructure and serves 360,000 borrowers. More than half of them are women. It is owned and controlled by international social impact and investment finance institutions, including Access Microfinance Holding AG based out of Germany, responsAbility Investment Management AG based out of Switzerland, Triodos Investment Management BV based out of the Netherlands, and Proparco based out in France. Since 2015, ADB and Credo have worked together on projects involving MSME financing, affordable home finance, and COVID-19 responses.
ADB is committed in its efforts to eradicate poverty and achieve a prosperous, inclusive and resilient Asia and Pacific. It was founded in 1966 and is owned by 68 member countries, 49 of which are from the region.
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