The Asian Development Bank (ADB) and Credo Bank have signed a loan agreement of 65 million lari (equivalent to around $25 million) to support micro, small, and medium-sized enterprises (MSMEs) in the agricultural sector, with a special focus on women-owned businesses.
Aiming for Food Security and Gender Equality
The loan will help Credo Bank to provide financial assistance to MSMEs involved in agricultural production, processing, and trade. The project will promote domestic food production and import substitution to enhance the food security of Georgia. It will also address the financing gap faced by women entrepreneurs, who account for over a third of the country’s agricultural employment and agricultural holdings ownership.
According to ADB Director General for Private Sector Operations Suzanne Gaboury, “Women remain underserved in terms of accessing financial assistance. Credo is uniquely focused on closing this financing gap. Additionally, this project will promote domestic food production and import substitution to enhance the food security of Georgia.”
Expanding Rural Outreach and Climate Resilience
The loan will be funded by ADB issuing local currency bonds, which will help Credo Bank avoid foreign currency exposure and risks. The loan will also be accompanied by a technical assistance grant of up to $700,000, which will facilitate Credo’s rural outreach by expanding its digital infrastructure and promoting climate-resilient farming practices to its borrowers.
The grant will support initiatives to improve women’s financial access and literacy in remote villages and improve rural women’s competencies in financial and digital literacy. The project will also help Credo Bank to adopt environmental and social safeguards and gender action plans in line with ADB’s standards.
Strengthening the Partnership between ADB and Credo Bank
Credo Bank is the fifth largest commercial bank in Georgia and has a robust rural presence with 87 branches and digital infrastructure serving 360,000 borrowers, of which more than half are women. It is owned by international social impact and development finance institutions such as Access Microfinance Holding AG based in Germany, responsAbility Investment Management AG in Switzerland, Triodos Investment Management BV in the Netherlands, and Proparco based in France.
Credo Bank Chief Executive Officer Zaza Pirtskhelava expressed his appreciation for the long-term strategic partnership with ADB. “Over the years, their unwavering support through over 185 million lari of total investments has been instrumental in our bank’s growth and development. This particular transaction is a significant milestone, as it will empower agriculture businesses, with a specific focus on women entrepreneurs,” he said.
Since 2015, ADB has worked with Credo on projects covering MSME financing, affordable housing finance, and COVID-19 response. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
