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IFC and Canada Support Green Housing Construction and Job Creation in Georgia

Published: May 31, 2013 | 1:18 pm
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(CNA)-IFC, a member of the World Bank Group, with the support of the government of Canada, is helping a local company develop energy efficient, affordable, and quality housing projects in Georgia.

IFC will provide M2 Real Estate, the wholly-owned subsidiary of Bank of Georgia, with a revolving loan of up to $14 million, including up to $4 million from the IFC-Canada Climate Change Program. The financing will help the expansion of urban infrastructure in Georgia by building high-quality affordable housing in the form of resource efficient apartment buildings. The project will create jobs in the construction sector and increase the work of housing communities.

“Having successfully worked with 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,” said Giorgi Vakhtangishvili, Chief Executive Officer, M2 Real Estate. “The funding will help M2 Real Estate to realize three new projects in the heart of Tbilisi, boosting the local economy.”

The project envisages green buildings designed to increase the efficient use of energy, water, and materials, reducing any negative impact on the environment. The Government of Canada’s instrumental contribution will help make the financing package viable.

“This project is an example of Canada’s action to address climate change on a global level. Our joint efforts are providing opportunities for a greener future worldwide,” said Canada’s Environment Minister, the Hon. Peter Kent.

Thomas Lubeck, IFC Regional Manager for the South Caucasus, said: “This is IFC’s first investment in housing development in Georgia, increasing the supply of quality housing and improving standards of living for local families. Through this investment, we also support the efficient use of resources, help create jobs, and increase investor confidence in the sector.”

Georgia became a member of IFC in 1995. Since then, IFC has invested $607 million in 49 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.

About the IFC-Canada Climate Change Program
The IFC-Canada Climate Change Program promotes private sector financing for clean energy projects. Canada’s financing to IFC for this program is part of its overall fast-start financing contribution for 2010–2011. Under the Copenhagen Accord, developed countries committed to provide fast-start financing of almost $30 billion for 2010–2012 to support climate-change mitigation and adaptation in developing countries. As part of Canada’s commitment to support climate change action in developing countries, Canada is contributing $1.2 billion Canadian dollars in new and additional climate-change financing over three years (fiscals 2010–2013).

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.

About M2 Real Estate

JSC M2 Real Estate, a wholly-owned subsidiary of JSC Bank of Georgia is a real estate company focusing on the real estate development, property management, project management and brokerage services. To this date, M2 Real Estate has attracted equity and debt financing in the aggregate amount of US$ 20 million. M2 Real Estate has successfully completed one housing project located in a central district in Tbilisi, Georgia with the second similar project underway planned to be finished in 2014. For more information, visit www.m2.ge

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