Transparency and a culture of open communication, personalized banking services, social responsibility, and the implementation of modern European business development perspectives – these are some of the advantages that have distinguished ProCredit Bank over its 25 years of operation. The bank is part of the international ProCredit Holding, which is listed in the premium segment of the Frankfurt Stock Exchange. The group unites financial institutions across Germany and Eastern Europe, currently operating in 12 countries.

ProCredit entered Georgia in 1999 and has supported small and medium enterprises (SMEs) for 25 years, enhancing access to both local and European financial resources and sharing essential knowledge and skills with entrepreneurs. For years, ProCredit has been a leading company in Georgia, investing in eco-friendly projects across various business sectors to foster the main drivers of the economy and introduce Western practices for reducing environmental impact.

More specifically, about the significant projects the bank has implemented to support businesses, what opportunities does the company currently offer to clients, and what are its future plans? Giorgi Kardenakhlishvili, Head of Medium Business Development at ProCredit Bank, discusses these topics:

What key services and products have you introduced to support businesses over 25 years of operation?

Over the years, we have implemented various important projects. Each product and service we offer is designed to help small and medium-sized businesses grow and make smart investments. Our focus is not on maximizing short-term profits; instead, we prioritize long-term, stable relationships with our clients, which is a defining feature that sets ProCredit apart in the market.

About five years ago, ProCredit introduced financial guarantees for our clients, which was unprecedented at that time. We managed to invest 100 million euros, supporting the growth of small and medium-sized entrepreneurs who lacked sufficient collateral. I believe these investments have made a significant contribution to economic development.

For years, our bank has also prioritized green investments, an area in which we are pioneers in Georgia. Since as early as 2012, a substantial part of our portfolio has been dedicated to this direction. Eco-friendly investments help businesses save costs significantly over the long term and reduce environmental impact.

For 25 years, ProCredit has focused on supporting small and medium-sized businesses (SMEs) as a priority. What challenges did you face in this area, and how has the situation evolved?

ProCredit has grown in step with Georgia's economy. Years ago, we started developing alongside SMEs, with the advantage of our international experience, which allowed us to introduce services and products that were previously unavailable in the market.

In the early stages, businesses struggled with long-term planning, which is essential for banks. To address this, we collaborated closely with clients to determine which types of investments would benefit both parties. Today, SMEs in Georgia are well-established, receive essential banking services, and can undertake long-term investments. As we have over the past 25 years, we remain committed to supporting their growth.

What sets you apart from competitors, and what advantages does the opportunity for German co-financing create for businesses?

The main difference lies in the international experience of our group. The journey ProCredit Group has undertaken, particularly across European countries, helps us establish clear perspectives and goals, enabling us to create services and products tailored to our clients' needs.

The most important aspect that distinguishes us in the market is our personalized service: every ProCredit client has a dedicated person. We value every client, regardless of the size of their business, ensuring they feel secure and that all their needs are met promptly.

As for the opportunity for German co-financing, since 2017-18, we have offered clients access to loan products at the same rates as businesses in the European Union. This is a very attractive offer, though it's important to note that the product is available only for specific sectors and has certain financial limits.

Through German co-financing program, business clients also have the exclusive opportunity to maintain an account with a German bank, which helps them save on costs, as transactions within EU countries are significantly more affordable.

Additionally, I want to emphasize that for 25 years, our commitment to earning trust has been strengthened by our focus solely on banking activities, without venturing into other sectors. I want to be clear that in the future, ProCredit will remain focused exclusively on banking, continuing to support the development of the country’s economy in this way.

What opportunities does the EU4Business-EBRD Credit Line program, which is part of ProCredit's green policy, offer to SMEs in Georgia?

The EU4Business-EBRD Credit Line gives our customers the opportunity to make investments in green technologies and receive a certain percentage of the loan back as an incentive.

For example, if a business receives financing from ProCredit for the installation of solar panels, after successful implementation and verification of the project, the company receives 10% of the loan value as an investment incentive, funded by the European Union under the EU4Business initiative. The investment incentive helps the clients reduce the payback period, and the investment becomes more cost effective.

As you mentioned, the bank is backed by European experience, which includes a commitment to promoting green economic development. In your view, what challenges exist in Georgia in terms of businesses caring for the environment, and how important are reciprocal steps in aligning more closely with the European Union?

I believe that reducing negative environmental impact and integrating ethical production perspectives are essential for closer alignment with the EU. A bank that has actively supported green economic development for 25 years helps the country progress to new stages. Additionally, having a European bank in the Georgian market, one that is listed on the Frankfurt Stock Exchange, is significant for sharing expertise and attracting new investments.

Regarding ecological challenges, two main factors stand out: first, the impact on the environment, and second, cost reduction. Reducing environmental impact is crucial for creating a healthy environment and caring for the well-being of those around us. Cost reduction is directly tied to adopting modern technologies and constructing energy-efficient buildings, which provide substantial financial benefits in both the short and long term.

What are ProCredit Bank’s future plans?

Over 25 years, ProCredit has had various priorities. For the past 10-12 years, we have been highly focused on supporting small and medium-sized businesses (SMEs) and actively promoting the development of micro-businesses. Looking at it from today’s perspective, our approach has proven effective, as SMEs have made a significant contribution to employment and the country’s economic growth. We plan to maintain strong positions in this direction over the next five years. Additionally, we will actively develop projects necessary for financing retail and micro-businesses.

One of the most important projects ProCredit is currently implementing is supporting women entrepreneurs. We have created specific products focused on financial guarantees to assist women entrepreneurs who previously lacked access to financial resources. This project goes beyond access to loans or general banking products. We also plan to provide educational support, including training sessions and informational meetings. In the future, we will strengthen our support for women entrepreneurs and develop new products for them. Furthermore, we will make certain advancements in the technology sector as well.