IFC Commits New Financing to Isbank Georgia to Boost Access to Finance for SMEs

IFC Commits New Financing to Isbank Georgia to Boost Access to Finance for SMEs

IFC Commits New Financing to Isbank Georgia to Boost Access to Finance for SMEs

  • IFC’s financing of $10 million equivalent in EUR to support Georgia’s smaller businesses
  • Around 20 percent of financing earmarked for climate finance to boost energy efficiency and renewables


Tbilisi, Georgia, April 15, 2024—To increase access to finance for Georgia’s small and medium enterprises (SMEs) and bolster the country’s finance sector, IFC signed a new loan agreement providing Isbank Georgia with a financing package of $10 million equivalent in EUR.


Access to finance is the third main constraint to doing business for Georgian firms according to the World Bank’s Enterprise Surveys 2023. IFC’s partnership with Isbank Georgia aims to address that challenge by enabling the bank to increase its lending to SMEs, helping them become more competitive and create jobs.


Lack of finance is also one of the main barriers to implementing energy efficiency and renewable energy measures among Georgia’s smaller businesses. To help address that, around 20 percent of IFC’s financing will be earmarked for climate finance projects, including those supporting energy efficiency measures and renewables. This will also help Isbank Georgia in establishing its climate finance portfolio.

H. Emre Yılmaz, CEO and Country Manager of Isbank Georgia, said: “Georgia’s smaller businesses are a crucial part of the country’s economy. IFC’s financing will support our efforts to expand our offerings to our SME clients and diversify the loan portfolio of the bank while also encouraging measures to reduce their carbon footprint. This funding will support the bank in financing energy efficiency and renewable energy projects.”

The project is part of IFC’s Base of the Pyramid Platform, a $1 billion global financing facility launched in 2021 to support financial services providers in delivering funding to smaller businesses and low-income households, to support economic growth and job creation.


“While access to finance has improved significantly in Georgia, many smaller businesses still cite access to finance among their major constraints. That is why supporting the financial sector is one of our strategic priorities. Our partnership with Isbank Georgia aims to help boost economic growth and resilience sustainably, with a climate-related component to also help businesses improve their energy efficiency,” said Ivana Fernandes Duarte, IFC's Regional Manager for the South Caucasus.


IFC partnered with Isbank Georgia in 2020 with a $10 million investment to scale up on-lending to SMEs as well as an agreement for cross-currency interest swaps to allow the bank to better manage its assets and liabilities.

Isbank Georgia is a wholly owned subsidiary of Türkiye İş Bankası A.Ş., the largest private banking group in Türkiye and a longstanding IFC client. This project further expands IFC’s strong relationship with the İşbank Group.

About IFC

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.


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About JSC Isbank Georgia

JSC Isbank Georgia has been operating in Georgia since 2012 and is a wholly owned subsidiary of Türkiye İş Bankası A.Ş., the largest private bank in Türkiye with total assets of $83 billion as of December 2023. Türkiye İş Bankası A.Ş. is represented with 1,066 domestic and 22 foreign branches in 5 countries, as well as subsidiary banks and representative offices in 6 more countries. JSC Isbank Georgia provides a wide variety of banking products and services to corporate and SME clients in Georgia. For more information, visit www.isbank.ge.