The Project aims to improve access to essential health and education services in Georgia, particularly in underserved areas, by financing infrastructure sub-projects through TBC Bank.
The Project constitutes an up to USD100 million, three-year, senior unsecured loan to TBC Bank with two equal tranches, to be disbursed either in USD or in GEL. The proceeds of the loan would be used to finance sub-projects in the social infrastructure segment.
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP) and its Environmental and Social Exclusion List (ESEL) apply to this Project. The Project is classified as Category FI, whereby AIIB delegates decision-making on the use of AIIB’s funds to the borrower, provided sub-loans comply with AIIB’s environmental and social (E&S) criteria and requirements, through a fit-for-purpose environmental and social management system (ESMS) that applies a robust E&S risk management (ESRM) approach, proportional to the risks and impacts of its projects. All sub-projects will be screened, categorized and assessed for E&S risks and no high-risk activities will be allowed using AIIB proceeds. AIIB’s loan will only support low to medium risk activities (as defined in AIIB’s ESP) in the health and education sectors, led by micro, small and medium sized enterprise (MSME) clients of TBC Bank.
Environmental and Social Instruments. TBC Bank has a robust environmental, social and governance (ESG) and Sustainability Strategy described in detail in its annual sustainability report and an internal risk appetite framework that determines, together with its exclusion list, the activities and sectors it invests in. TBC Bank’s ESMS / ESRM procedure, (Our Environmental Management System | TBC Bank) developed in collaboration and consultation with the EBRD and IFC, requires all MSME and Corporate loans to undergo screening, categorization, and assessment (due diligence) commensurate with the risks and impacts of each activity. No material gaps were identified between the TBC Bank’s ESMS / ESRM practices and AIIB’s requirements for FI projects, which are consistent with IFC and EBRD requirements, against which the system was developed. Given AIIB-supported activities will be of low risk, credit and E&S risk screenings and approvals are anticipated to only require internal review and assessment.
Environmental and Social Aspects. While sub-projects in the social sector are generally of lower risk than those in other sectors, common E&S risks and impacts that need to be managed, are linked to: (i) the design, implementation and management of life and fire safety systems; (ii) environmental impacts on air, water and soil; (iii) elevated noise levels, toxic fumes and suspended particulate matter; (iv) generation, management and disposal of hazardous (medical) waste; (v) labor and working conditions; (vi) occupational health and safety; (vii) community health, safety and security; (viii) stakeholder and worker grievance redress; and (ix) emergency response and preparedness. The above E&S risks and impacts will be mitigated and managed in compliance with Georgia law and regulations and consistent with international good practices as relevant, per TBC’s ESMS / ESRM.
Stakeholder Engagement and Information Disclosure. TBC Bank maps and engages with material stakeholders on a yearly basis. These interactions inform the Bank’s sustainability strategy, data collection and reporting requirements. Separately, TBC organizes initiatives on financial and social inclusion to empower retail, MSME and corporate customers, as well as broader stakeholders in Georgia, reducing poverty and boosting economic activity and innovation across the country. Details of the bank’s sustainability initiatives with stakeholder groups can be found in the bank’s annual sustainability report. An overview of TBC Bank’s ESMS / ESRM is available on its website in English and the local language.
Project Grievance Redress Mechanism (GRM). The Bank’s stakeholder grievance mechanism (Anonymous Hotline) is disclosed on its website and accessible through various means (email, telephone, online form, in person, etc.), including anonymous means. The company maintains a central grievance redress log and escalates concerns or complaints to the relevant departments, in accordance with its procedure. In addition to this, sub-projects financed using AIIB proceeds with labor and occupational health and safety (OHS) risks considered to be of a sensitive or high nature, are required by law to have a stakeholder and worker grievance mechanism, proportional to the risks and impacts of the activity. The construction contractors will display banners at the site indicating the contractor’s name, address, and contact details. This provides stakeholders with a fit-for-purpose channel to raise and address concerns or complaints as needed.
Monitoring and Reporting Arrangement. TBC Bank’s credit risk and E&S risk management teams are responsible for overseeing, tracking, monitoring and reporting on the performance of project activities, in consultation with material stakeholders, including the preparation of the annual sustainability report, through the Sustainability Team. TBC Bank will submit annual monitoring reports to AIIB based on an agreed format, indicating the portfolio of approved health and education sub-projects supported by AIIB funds, including a brief project description and information on E&S risks and impacts managed onsite. The report will include a list of serious grievances raised by stakeholders / workers involved in AIIB-funded sub-projects, including an account of how these were addressed and closed, consistent with the borrower’s / Bank’s grievance procedure and AIIB ESP requirements.
Asian Infrastructure Investment Bank
Yulia Rusanova
Senior Investment Officer
JSC TBC Bank (TBC)
Maia Kacharava
Team Lead, Financial Institutions Relations Division
Home What We Do Project List Georgia: TBC Bank Social Infrastructure On-Lending Facility
