Bank of Georgia Holdings PLC (“BGH”), the holding company of JSC Bank of Georgia (“the Bank”), Georgia’s leading bank announces that IFC, a member of the World Bank Group, with the support of the Government of Canada, will provide JSC m2 Real Estate, the wholly-owned subsidiary of Bank of Georgia with a revolving loan to support green housing construction and job creation in Georgia. The facility will help m2 Real Estate develop energy efficient, affordable and quality housing projects in Georgia addressing housing deficit.
IFC will provide m2 Real Estate with up to $14 million revolving loan, including up to $4 million from the IFC-Canada Climate Change Program. The financing is expected to meet the working capital requirements of the company and contribute to expansion of urban infrastructure in Georgia by building high-quality affordable housing in the form of green, resource efficient, multi-resident apartment buildings.
“We are very pleased that m2 Real Estate is the first Georgian real estate company to cooperate with IFC to develop a housing project in Tbilisi. Having successfully worked together with the Development Finance Institutions to finance our existing projects, m2 Real Estate is committed to provide its customers in Georgia with affordable, quality and modern housing. The US$14 million funding will help m2 Real Estate to realise three new projects in the heart of Tbilisi,” commented Irakli Burdiladze, Deputy CEO of Bank of Georgia, Affordable Housing.
The project envisages construction of green building designed to increase efficient use of energy, water, and materials, while reducing negative impact on health and environment. These improvements will be made possible thanks to the government of Canada's instrumental contribution, which will help make the financing package viable.
Thomas Lubeck, IFC Regional Manager for the South Caucasus, said: “This is IFC’s first investment in housing development in Georgia, increasing the supply of quality housing and improving standards of living for local families. Through this investment, we also support the efficient use of resources, help create jobs, and increase investor confidence in the sector.”
