Tbilisi, Georgia, November 19, 2015—IFC,
a member of the World Bank Group, is providing a $23 million loan package
to a subsidiary of m2 Real Estate to fund green, low-to-middle-income
housing in the Georgian capital, helping create jobs and spur economic
Poorly insulated, Soviet-era apartments represent
a significant part of Tbilisi’s housing stock, while demand for high-quality
affordable housing remains largely unmet. IFC’s loan to m2 Residential
LLC, which includes $11.5 million mobilized from the Green for Growth Fund,
Southeast Europe (GGF), will finance around 1,800 apartments, which are
expected to increase the efficient use of energy, water, and materials
to reduce negative impacts on health and the environment.
“This partnership with IFC has helped us
complete the first stage of our strategy to provide quality housing in
Tbilisi,” said Irakli Burdiladze, Chairman, m2 Real Estate.
“As one of the leading Georgian development companies, we are committed
to continue to improve living standards for Georgian families.”
Jan van Bilsen, IFC Regional Manager for
the South Caucasus, said: “IFC’s financing continues to set a standard
for developing energy efficient buildings, fostering competition in the
housing sector. In addition to improving people’s living standards, the
project is expected to create jobs through local procurement during and
after construction, contributing to economic development.”
Christopher Knowles, Chairman of the Green
for Growth Fund, Southeast Europe, said: “With the support provided to
m2 Residential LLC in partnership with IFC, we demonstrate our
continued commitment to energy savings and the reduction of CO2 in Georgia,”
says “The housing projects of M2 Residential LLC achieve an estimated
40% energy savings compared to similar-sized new buildings in the Georgian
market, demonstrating the demand for high quality, green buildings.”
m2 Real Estate aims to build more
than 2,000 new apartments by the end of 2018. In 2013, IFC provided the
company with a revolving loan of $14 million, including $4 million from
the IFC-Canada Climate Change Program, to help develop Georgia’s first
energy efficient, affordable housing projects.
Since Georgia became an IFC member in 1995,
IFC has provided more than $1 billion in long-term financing, including
$362 million mobilized from partners, supporting 52 projects across various
sectors. In addition, IFC has supported trade worth nearly $300 million
through its trade finance program, and implemented a number of advisory
projects focused on private sector development.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About m2 Real Estate
JSC m2 Real Estate, a wholly-owned
subsidiary of Bank of Georgia Holdings plc, is a real estate company focusing
on the real estate development and property management. To this date, m2
Real Estate has attracted equity and debt financing in the aggregate amount
of nearly US$ 80 million. m2 Real Estate has already successfully
completed 3 housing projects located in the central districts in Tbilisi,
Georgia, with 3 more projects underway planned to be finished in 2016.
For more information, visit www.m2.ge.
About the Green for Growth Fund, Southeast
The Green for Growth Fund, Southeast Europe
(GGF) is dedicated to enhancing energy efficiency and fostering the use
of renewable energy sources in Southeast Europe, including Albania, Bosnia
and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia, and
Turkey as well as in the nearby European Eastern Neighbourhood region comprised
of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides
refinancing to financial institutions for on-lending to enterprises and
private households seeking to finance energy efficiency projects. The GGF
also invests directly in small to medium-scale renewable energy projects.
To maximize the impact of the Fund’s investment activities, the GGF’s
Technical Assistance Facility offers capacity building support to local
financial institutions and partners. The GGF was initiated as a public-private
partnership in December 2009 by the KfW Development Bank (KfW) and the
European Investment Bank (EIB) with the financial support of the European
Commission, the German Federal Ministry for Economic Cooperation and Development
(BMZ), and the European Bank for Reconstruction and Development (EBRD).
Its growing base of committed investors comprises donor agencies, international
financial institutions and institutional private investors, such as the
International Finance Corporation (IFC), the Netherlands Development Finance
Company (FMO) and the Development Bank of Austria (OeEB). The GGF, registered
under Luxembourg law as a SICAV (variable capital investment company),
is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg,
in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main,
Germany, and the technical advisor, MACS Management & Consulting Services
GmbH, Frankfurt/Main, Germany. For more information: www.ggf.lu.
* This designation is without prejudice to
positions on status, and is in line with UNSC 1244 and the ICJ Opinion
on the Kosovo Declaration of independence.