Assisting JSC ProCredit Bank with its social and environmental strategy in Georgia

ProCredit Holding was founded in 1998 by the consulting firm IPC (Internationale Projekt Consult), and was subsequently supported by the Dutch foundation DOEN and Development Finance Institutions, including KfW, DEG, IFC, FMO and BIO.

ProCredit Group’s DNA is largely consistent with Proparco’s strategy, as it has a focus on impact and, more specifically, the climate, gender equality and SME financing.

The project is in line with the strategic objectives set out in Proparco’s Strategy 2023-2027 through pillar n° 3 “Acting for greater equality”. Indeed, the senior loan facility aims to reduce regional inequalities in Georgia: 40% of the funds will go to regions outside of Tbilisi with a high concentration of “Bottom 40” population groups. It also aims to finance the reduction of gender inequalities, with 5% of the funds targeting MSMEs that fulfil the 2X Challenge criteria.

The expected impacts of this financing are as follows:

• 524 jobs supported over the next 5 years in the companies financed by the bank (indirect jobs) and 5 direct jobs in the bank
• More than 26 MSMEs supported
• This financing has 5% of climate mitigation co-benefits as it targets “climate” projects  as defined by Proparco’s criteria