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Financial support of European Investment Bank

JSC Bank of Georgia, with support of European Investment Bank, offers special financial advantage on loans for SMEs and Mid-Caps:
 
Main conditions for financing of small and medium-sized enterprises (SMEs) with fewer than 250 employees and Mid-Caps, i.e. private sector entities with fewer than 3000 employees, for investments with a project cost up to EUR 25 m:
 
 
  • The total cost of each project should not exceed EUR 25 000 000, or its equivalent in other currencies;
  • The amount of an EIB loan may reach up to 100% of the loan granted by BOG to a client, but may not exceed EUR 12.5m (or other currency equivalent); 
  • The term of loans granted by BOG to the client should not exceed the economic and technical life of the project financed, and should have a minimum term of 2 years; 
  • Projects must be located in the territory of Georgia under the control of the Georgian government.
 
Main conditions for financing of investment projects carried out by Mid-Cap companies for investments with a project cost between EUR 25m and EUR 50m:
 
  • The total cost of each project should be greater than EUR 25 000 000 but not exceed EUR 50 000 000 or its equivalent in other currencies;
  • The amount of an EIB loan shall not exceed 50% of the project cost;
  • The term of loans granted by BOG to the client should not exceed the economic and technical life of the project financed, and should have a minimum term of 2 years. 
  • Projects must be located in the territory of Georgia under the control of the Georgian government.
 
Financing through Leasing
Both operational leases and financial leases are eligible, as long as the asset financed (the project) has a medium to long-term economic life. Consumer lease finance is not eligible.
 
Investment categories
Investments and expenditures which could be considered for financing as part of the Project: 
  • The purchase, renovation or extension of tangible assets other than land;
  • Investment in intangible assets, i.e.:
    - Development, planning and financing costs during the construction phase of a tangible asset;
    - R&D expenses (fees, development costs and gross salaries directly associated with the research, development, and innovation components of the activity);
    - Building up of distribution networks in domestic or other markets (asset and/or trademark acquisition, operational costs and labour costs);
  • Medium and long term working capital needs. EIB may be used to provide a stable working capital base through the financing of working capital requirements of SMEs and Mid-Caps associated with their trading cycle, as part of their normal activities. Categories financed can include, amongst others, the funds required to pay for raw materials and other manufacturing inputs, inventories and overheads, funding to finance trade receivables and non-consumer sales receivables, justifying a two-year loan at least. The utilisation of the working capital line may fluctuate upwards and downwards during its minimum 2 year lifetime. BOG will provide a loan to the client for at least two years to finance working capital, reflecting a long-term funding need by the client.