Question 1

What is ProCredit Bank?

Accepted Answer

ProCredit Bank is a development-oriented commercial bank in Georgia that specializes in serving small and medium-sized enterprises (SMEs). As a member of the ProCredit Group, a German-headquartered financial group, the bank operates as a subsidiary of ProCredit Holding AG and is the only Western European bank in the Georgian market. It is the 7th largest bank in Georgia with a market share of approximately 2.21% as of 2023.

The bank combines international standards with local expertise to provide financial services to businesses with long-term development plans. ProCredit Bank holds the highest possible Fitch rating in Georgia (BB+), which is one notch above the country's sovereign rating.

Question 2

When was ProCredit Bank founded?

Accepted Answer

ProCredit Bank was founded in October 1998 as a closed joint stock company under Georgian law, originally named the Microfinance Bank of Georgia. The bank was established through a collaborative effort involving the German-Georgian Foundation (GGF), the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the Dutch FMO, and four Georgian banks, with initial share capital of GEL 5 million (approximately EUR 3.4 million).

After receiving its general banking license from the National Bank of Georgia, the bank commenced operations in May 1999. It was renamed ProCredit Bank in 2003, reflecting its evolution from a microfinance institution into a full-service commercial bank focused on SME financing.

Question 3

Where is ProCredit Bank headquartered?

Accepted Answer

ProCredit Bank is headquartered at 21 Al. Kazbegi Avenue in Tbilisi, Georgia. The bank built its current headquarters building between 2008-2009 and began occupying it in 2013. The headquarters has achieved EDGE certification for environmental performance, making it the first bank building in Georgia to obtain ISO 14001 environmental certification.

The headquarters building incorporates sustainable features including solar panels with 100kWh capacity, LED lighting systems, rainwater harvesting, and energy-efficient technologies that align with the bank's commitment to environmental responsibility.

Question 4

Where does ProCredit Bank operate?

Accepted Answer

ProCredit Bank operates throughout Georgia with a network of 4 branches, 1 service point, and 7 self-service areas located in the country's 4 main cities. These include locations in Tbilisi, Gori, and other key commercial centers across Georgia.

The bank has strategically positioned its branches in commercial centers and high-traffic areas to maximize accessibility for its target SME clients. The network also includes 24/7 self-service zones equipped with advanced banking machines for customer convenience.

Question 5

What services does ProCredit Bank offer?

Accepted Answer

ProCredit Bank provides comprehensive banking services for both business and retail clients. For businesses, the bank offers credit lines to finance working capital, amortization loans, annuity term loans, bank guarantees, trade finance, and documentary business services. The bank specializes in financing SME investments, including support for innovative technologies and green investments focused on resource-efficient technologies and renewable energy.

For retail clients, ProCredit Bank offers current accounts, savings accounts, time deposit accounts, debit cards, domestic and international payments, and efficient e-banking services. The bank's digital services include online banking platforms, mobile applications, and recently implemented IDNow technology for digital identity verification—unique in the Georgian market.

Deposits up to 15,000 GEL are protected by the Georgian deposit guarantee scheme through the Deposit Insurance Agency of Georgia (DIAG). The bank emphasizes transparent, all-inclusive fee structures that allow clients to conduct most activities without hidden costs.

Question 6

What makes ProCredit Bank unique?

Accepted Answer

ProCredit Bank distinguishes itself through several unique characteristics. As the sole Western European bank operating in Georgia, it applies the highest international standards for risk management and is additionally regulated by German financial authorities through its parent company, providing extra security for clients.

The bank pioneered green lending in Georgia and was the first to obtain ISO 14001 environmental certification. Its Business Client Advisers are highly trained professionals who are not driven by bonus systems, allowing them to prioritize clients' long-term success over short-term sales targets.

ProCredit Bank invests significantly in staff development, with the group providing an average of 18.3 days of training per employee annually, including both banking skills and humanities subjects. The bank also demonstrates exceptional customer service with loan processing times often under one week, and some loans disbursed within 24 hours.

Question 7

What type of financial institution is ProCredit Bank?

Accepted Answer

ProCredit Bank is a universal commercial bank (სააქციო საზოგადოება - Joint Stock Company) under Georgian law, licensed and supervised by the National Bank of Georgia. While it originally started as a microfinance bank focused exclusively on micro-lending, it evolved into a full-service universal bank offering both business and retail banking services.

The bank's core business remains SME lending, particularly to businesses with long-term development plans and those making investments in productivity improvements. This development-oriented approach, combined with its comprehensive banking license, positions ProCredit Bank as a hybrid institution that combines commercial banking operations with a mission-driven focus on supporting sustainable economic development in Georgia.

Question 8

What international partnerships does ProCredit Bank maintain?

Accepted Answer

ProCredit Bank has established strong partnerships with major international financial institutions to support Georgian SMEs. Since 2011, the bank has collaborated with the European Investment Bank (EIB), financing 872 small and medium business projects totaling EUR 25 million. The bank signed three EIB Loans for SMEs between 2011 and 2015, with a combined value of EUR 40 million.

In 2017, ProCredit Bank signed Georgia's first InnovFin agreement with the European Investment Fund (EIF), backed by Horizon 2020, enabling the bank to provide EUR 50 million in loans to innovative companies with a 50% guarantee on each loan. The bank also maintains relationships with the EBRD, which has provided loans specifically for financing Georgian MSMEs' investments in technology upgrades and equipment that meet EU standards.

These partnerships enable ProCredit Bank to offer medium-to-long-term financing that would otherwise be unavailable in the Georgian market, with up to 70% of sub-loans complying with EBRD Green Economy Transition approaches.

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About ProCredit Bank in Georgia