Skip to navigation Skip to main content Skip to site map


Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
GeoCapital, Georgia
Project ID
Fiscal year
Guarantee holder
Principals of a microfinance organization operating in Georgia
Investor country
United States
Host country
Environmental category
Date SPG disclosed
April 19, 2013
Project Board date
May 03, 2013
Gross exposure
 $2.0 million
Project type
Strategic priority area

Project Description

This summary covers equity investments and shareholder loans by two American investors in GeoCapital, Georgia. The investors have applied for MIGA guarantees of US$2.06 million for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves investment in the creation and subsequent expansion of operations of GeoCapital Microfinance Organization LLC (GC), a fast-growing microfinance institution in Kutaisi (Imereti region), Georgia. GC offers small loans primarily to individuals but also to micro and small businesses. The purpose of the loans is to provide working capital for small businesses, house remodeling/repairs, education and medical expenses, and other general purposes. These loans are extended to the large population of households and businesses that have had no or limited access to credit.

Environmental Categorization

The project is a category C under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

In Georgia, access to finance is one of the main constraints for both companies and individuals. GC is helping a part of the “unbankable” population gain access to credit and loans for purposes ranging from home equity loans to medical, educational, and income-generation loans. As a large portion of these loans are extended to individuals, they enhance Georgians’ capacity to pay for social services.

GC’s loans carry a lower interest rate than other microfinance institutions operating in the country. This competition has resulted in other institutions’ reductions in their rates by an annual average of 20 percent—to the benefit of low-income consumers.

Since its establishment in 2011, GC has opened three branches and employs 30 people. The company has plans to open 17 new branches within the next three years.

The World Bank Group Country Partnership Strategy for Georgia recognizes that credit constraints are severe in the country, and the proposed project addresses this concern.  MIGA’s proposed support for this investment is also aligned with the Agency’s strategy of supporting investments into countries eligible for concessional lending from the International Development Association.

The project would be underwritten through MIGA’s Small Investment Program.


Apply for an Investment Guarantee
The World Bank Group logo