Bank of Georgia receives financing for housing project

FTSE 250-listed Bank of Georgia has received a 14m dollar loan for its subsidiary m2Real Estate to develop green housing projects in Georgia.

IFC, a member of the World Bank Group, will provide the funds, including $4m from the IFC-Canada Climate Change Program.

The bank said financing is expected to meet the working capital requirements of the company and contribute to expansion of urban infrastructure in Georgia by building high-quality affordable housing in the form of "green, resource efficient, multi-resident apartment buildings".

"We are very pleased that m2 Real Estate is the first Georgian real estate company to cooperate with IFC to develop a housing project in Tbilisi," said Deputy Chief Executive Officer of Bank of Georgia, Irakli Burdiladze.

"Having successfully worked together with the 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. The $14m funding will help m2 Real Estate to realise three new projects in the heart of Tbilisi."

The plan is to design a building to increase efficient use of energy, water, and materials, while reducing negative impact on health and environment.

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RD