IFC and Canada Support Green Housing Construction
and Job Creation in Georgia
Tbilisi, Georgia, May 31, 2013—IFC,
a member of the World Bank Group, with the support of the government of
Canada, is helping a local company develop energy efficient, affordable
housing in Georgia.
IFC will provide M2 Real Estate,
the wholly-owned subsidiary of Bank of Georgia, with a revolving loan of
up to $14 million, including up to $4 million from the IFC-Canada Climate
Change Program. The financing will help the expansion of urban infrastructure
in Georgia by building high-quality, affordable housing in the form of
resource-efficient apartment buildings. The project will create jobs in
the construction sector and increase the work of housing communities.
“Having successfully worked with 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,” said Giorgi Vakhtangishvili, Chief Executive
Officer, M2 Real Estate. “The funding will help M2 Real
Estate to realize three new projects in the heart of Tbilisi, boosting
the local economy.”
The project envisages green buildings designed
to increase the efficient use of energy, water, and materials, reducing
any negative impact on the environment. The Government of Canada's instrumental
contribution will help make the financing package viable.
“This project is an example of Canada’s action to address climate change
on a global level. Our joint efforts are providing opportunities for a
greener future worldwide,” said Canada’s Environment Minister, the Hon.
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.”
Georgia became a member of IFC in 1995. Since
then, IFC has invested $607 million in 49 projects across various sectors
and supported regional projects developed in the country. IFC has also
implemented a number of advisory projects focused on the development of
the private sector.
About the IFC-Canada Climate Change Program
The IFC-Canada Climate Change Program promotes private sector financing
for clean energy projects. Canada’s financing to IFC for this program
is part of its overall fast-start financing contribution for 2010–2011.
Under the Copenhagen Accord, developed countries committed to provide fast-start
financing of almost $30 billion for 2010–2012 to support climate-change
mitigation and adaptation in developing countries. As part of its commitment
to support climate change action in developing countries, Canada is contributing
$1.2 billion Canadian dollars over three years (fiscals 2010–2013).
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
About M2 Real Estate
a wholly-owned subsidiary of JSC Bank of Georgia,
is a real estate company focusing on real estate development, property
management, project management and brokerage services. M2
Real Estate has attracted
equity and debt financing totaling $20 million. M2
Real Estate has successfully
completed one housing project located in a central district in Tbilisi,
Georgia with the second similar project underway planned to be finished
in 2014. For more information, visit www.m2.ge.