Luxembourg and Tbilisi, 26 February 2024 – The Green for Growth Fund (GGF), an impact investment fund advised by Finance in Motion, is providing EUR 25 million in a 10-year subordinated loan facility to Bank of Georgia, a long-standing strategic partner of GGF, and the top-of-mind bank in the local market.
The investment aims to strengthen the Bank of Georgia’s capital base, reinforcing the Bank’s position as a leading green finance provider to businesses and households. The investment is complemented by green advisory services aimed at providing tailored consultancy to local businesses that are keen to become greener, more competitive, and resilient in the longer run.
Christopher Knowles, Chairperson of the GGF, said, “Our EUR 25 million investment in Bank of Georgia is a great step towards enhancing green lending and supporting green transition in the region. This demonstrates GGF's commitment to contribute to building greener, stronger, and more sustainable economies locally. We are delighted to partner with Bank of Georgia to jointly accelerate the transition to a greener and more sustainable future in Georgia,” said Christopher Knowles, Chairperson of the GGF.
Archil Gachechiladze, Bank of Georgia CEO, commented: “I would like to thank our long-term partners, GGF for their cooperation. We appreciate their ongoing support for Bank of Georgia and local businesses in Georgia. This facility enables us to continue empowering our customers, while maintaining a strong capital position.”
About the GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The Fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions, and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.
For more information on the Green for Growth Fund, see www.ggf.lu and follow us on X @GreenGrowthFund
About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
For more information, please visit us at: www.finance-in-motion.com
You can also follow us on X @financeinmotion and LinkedIn
About Bank of Georgia
Bank of Georgia Group PLC (the “Company” – LSE: BGEO LN) is a FTSE-250 company. Its core entity is JSC Bank of Georgia (“Bank of Georgia”, “BOG”, or the “Bank”), a digital banking leader in Georgia that provides a suite of banking and financial services to retail clients and businesses. By building on its competitive strengths, the Group is committed to delivering strong profitability sustainably and maximizing shareholder value.
Media contact GGF
Louise Nielsen
Marketing & Communications
Phone: +352 691 336 439
Email: press@ggf.lu
Media contact UniCredit Bank Serbia
Nino Phophkhadze
Head of Media relations team
Phone: +995 599 49 55 41
Email: nphophkhadze@bog.ge