Tbilisi, Georgia, February 12, 2015—IFC,
a member of the World Bank Group, is providing a $2 million loan to one
of Georgia’s largest winemakers and exporters, Tbilvino, to spur job creation
and generate tax revenues for the state budget, spurring economic growth.
IFC’s loan will support the company’s
working capital and enable further growth. Wine is one of Georgia’s key
export products. The project will contribute to the development of the
wine sector, which provides employment to a large number of households
in rural areas. This is expected to have a direct impact on poverty reduction,
as more than half of Georgia’s poor live in rural areas, and create jobs
both directly and indirectly.
“As an industry leader and producer
of the most demanded Georgian wines, we need a guaranteed source of high
quality grape supply,” said George Margvelashvili, President of Tbilvino.
“With this new investment we will enter the primary field of the wine-making
production cycle – vineyard development and grape growing. It will increase
the company’s capital, strengthen our self-sufficiency, and grow the brand
image, which is crucial for attracting customers and penetrating new markets.”
This is IFC’s second investment in
Tbilvino. After IFC provided its first $1.5 million loan to the company
in 2011, its farmer-suppliers more than tripled. With the new loan, this
number is expected to increase further, benefitting local small farmers.
“Our continued support to one of the
leading Georgian winemakers is a key part of our effort to help develop
a more efficient and productive agricultural sector in the country,” said
Thomas Lubeck, IFC Regional Manager for the South Caucasus. “This will
boost the growth of agricultural exports and help reduce poverty, especially
in regions where employment opportunities are scarce.”
Georgia became an IFC member in 1995.
Since then, IFC has invested more than $810 million in 60 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.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit
Tbilvino is Georgia’s largest exporter
of high quality wines. Tbilvino stands out as the leader in the local market
and successfully exports 95 percent of its production to 30 countries worldwide.
The company portfolio consists of up to 100 wine labels, produced under
four brands. Tbilvino wines are regular winners of prestigious international
wine competitions taking place in the UK, Germany, China, etc. During the
last few years the winery has been completely reconstructed and technological
lines upgraded. For more information, visit: www.tbilvino.ge.