JSC MFO CRYSTAL
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Crystal is the largest microfinance organization in Georgia that manages a net loan portfolio of around USD 160 million, employing more than 1,000 members of staff. Crystal operates through 49 branches and serves more than 112,000 unique customers across Georgia. Headquartered in Kutaisi, a regional city in the northwest of Georgia, Crystal primarily serves micro-entrepreneurs and farmers, with a strong focus on rural clients.
What is our funding objective?
This USD 15 million loan agreement (USD 10 million committed tranche and USD 5 million uncommitted) with a 5-year tenor will allow Crystal to finance micro and small entrepreneurs fully targeted at women and youth.
Why do we fund this investment?
Through this MASSIF facility, FMO realizes its strategic goals to finance micro and small entrepreneurs (MSMEs) as well as farmers to reduce gender inequality. Crystal plays an important role in providing access to finance to MSMEs, a critical segment in supporting job creation, and has ambitions to grow its green and gender portfolio. FMO's transaction offers added value by providing long-term local currency funding to support the de-dollarization of the Georgian economy.
What is the Environmental and Social categorization rationale?
The project has E&S risk category C in accordance with FMO’s Sustainability Policy. The project’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. Crystal will be required to adhere to the EDFI Exclusion List and Georgian E&S laws and regulations. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
More investments
| Date | Total FMO financing |
|---|---|
| 3/15/2022 | EUR 0.20 MLN |
| 9/7/2021 | USD 10.00 MLN |
| 4/18/2024 | USD 10.00 MLN |
- Website customer/investment
- https://ir.crystal.ge/
- Region
- Europe & Central Asia
- Country
- Georgia
- Sector
- Financial Institutions
- Publication date
- 5/27/2024
- Effective date
- 8/2/2024
- Total FMO financing
- USD 10.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C