IFC returns to Georgia with $40 million MSME leasing push

International Finance Corporation (IFC), a member of the World Bank Group, is considering a $40 million senior unsecured loan to Joint Stock Company TBC Leasing, marking a strategic return to Georgia’s non-banking financial sector after two decades.

The proposed financing will support the expansion of TBC Leasing’s portfolio, with a strong focus on micro, small, and medium-sized enterprises (MSMEs), particularly in underserved rural areas where access to traditional credit remains limited.

Boosting rural enterprise growth

At least 30% of the facility will be allocated to MSMEs operating outside urban centers, helping bridge financing gaps in Georgia’s agricultural and rural economies. The move aligns with IFC’s broader mandate to enhance financial inclusion and stimulate private sector development in emerging markets.

The investment also reflects renewed momentum in Georgia’s leasing industry, with IFC positioning the project as a catalyst to deepen alternative financing channels beyond conventional banking systems.

Strengthening sustainable finance capacity

Alongside the financing, IFC is exploring advisory support to help TBC Leasing develop a taxonomy-aligned sustainable leasing framework. The initiative is expected to improve the company’s capacity to scale green and socially aligned financing, particularly in agriculture and rural enterprise segments.

The advisory engagement will also enhance internal systems, enabling TBC Leasing to better classify eligible assets and mobilize sustainable capital over time.

Market leadership under TBC Bank Group

Founded in 2004, TBC Leasing operates as a wholly owned subsidiary of TBC Bank Group PLC through JSC TBC Bank, the country’s largest lender by assets. The group is listed on the London Stock Exchange and maintains a strong track record with international development finance institutions.

TBC Leasing commands more than 80% of Georgia’s leasing market, underscoring its dominant position in the sector.

Pending board approval

The project, currently pending approval, has a projected board date of May 29, 2026. If approved, the transaction would represent IFC’s first investment in Georgia’s leasing sector in 20 years, signaling renewed investor confidence in the country’s financial ecosystem and its potential to drive inclusive economic growth.