news - FMO Supports Credo Bank’s Portfolio Growth Through USD 30 mln/GEL 100 mln Local Currency Facility

FMO, the Dutch entrepreneurial development bank, announced that it has signed a GEL 100 mln (~USD 30 mln) facility with its long-term partner Credo Bank in Georgia, and a customer of FMO since 2016. The facility, offered in local currency, is 100% labeled under Reducing Inequalities, and will help Credo grow their overall portfolio (with an emphasis on youth portfolio), while also providing long-term GEL funding.

The event was marked by a signing ceremony held in Tbilisi, Georgia, which was attended by many guests and dignataries, including the Ambassador of the Netherlands in Georgia and Embassy Representatives, members of the Georgian Central Bank, Credo Bank's Management Board, representatives of DFIs and impact investors operating in Georgia, representatives from FMO, and many other guests.

Credo Bank has a wide regional outreach through ~80 branches and offers its 430,000 clients specialized products serving the needs of Georgian MSME businesses, in both urban and rural areas. Credo transformed from a Microfinance Organization into a full-fledged bank, with the banking license being granted in 2017. It is part of the Access Holding Network and acquired Finca Bank Georgia (FBG) in 2021. Today, Credo ranks #5 out of 14 banks in Georgia.

The Georgian economy is strongly dependent on agriculture, which remains a core segment for Credo, on which the bank is market leader. Credo Bank focuses on providing micro and SME loans. Within recent years, the bank has expanded its digital offerings, for example through Internet and mobile banking, and continues to provide new offerings to support its target group.

Credo Bank has been a customer of FMO since 2016, when FMO first provided a USD 10 mln facility and Capacity Development support to help Credo improve access to finance for micro businesses and SMEs. Through FMO’s latest round of financing, the development finance bank will contribute to the Credo’s funding stability and portfolio growth. In particular, this transaction pays specific attention to expanding Credo’s youth portfolio, with 50% of the new facility earmarked exclusively for that purpose.

Marnix Monsfort, Director Financial Institutions FMO, said: “We are pleased to support our longstanding partner Credo Bank impact-driven mission once again with our latest transaction. Not only does this investment directly support the financial inclusion of MSMEs and youth-owned MSMEs—therefore aligning perfectly with our core mandate of reducing inequalities—it also aligns with our strategic goal of increasing our impact in Georgia through financial institutions. We look forward to continuing our collaboration with Credo Bank for the foreseeable future.”

Zaza Pirtskhelava, Chief Executive Officer of Credo Bank, stated: “I would like to express my sincere appreciation to FMO for yet another successful transaction with Credo Bank. We count six years of collaboration and over GEL 200 mln investment in the bank, to improve access to finance especially, in rural areas of Georgia. This benchmark transaction will back micro, small and medium businesses, as well as young entrepreneurs, with affordable, long-term, local currency funding, necessary to their development.”

The Vice Governor of the National Bank of Georgia, Papuna Lezhava, said: “The Dutch development bank FMO is indeed an outstanding international financial institution and long-standing partner of Georgia, which helps us in development and sustainable growth of the country. This particular GEL 100 mln funding with 5 years maturity and the purpose to finance MSME segment and young entrepreneurs is a distinguished transaction because of its importance for Credo bank’s business model. The bank is operating in MSME segment for which long-term funding in GEL is essential. FMO funding to the financial sector provides significant support and contribute to economic growth, job creation, access to finance, positive social and environmental impact for Georgia.”

By supporting Credo Bank, FMO contributes to improving access to finance for Georgian micro businesses and SMEs, especially in rural areas. This transaction not only contributes to SDG 8 of decent work and economic growth by increasing employment in the local region, but also to SDG 10 of reduced inequalities by increasing employment among the young population in the rural areas. On a broader scale, it contributes directly to the development of the domestic capital market and the de-dollarization of the country through local currency financing—particularly important now given the macro-economic instability.

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About Credo Bank

Credo Bank is the fifth commercial bank in Georgia. With its wide regional outreach through 80 service centers, it offers fully-fledged and innovative banking services to its 430 thousand plus customers. The bank’s mission is to support Georgia’s entrepreneurs and their employees to create a better future by offering affordable financial services. International social impact and development finance institutions such as German - Access Microfinance Holding AG, Swiss - responsAbility Investment Management AG, the Dutch – Triodos Investment Management BV and French – Proparco, own Credo Bank.

Media Contact:

Megi Gurgenidze | mgurgenidze@credo.ge