Multi-million loan will expand glass bottle production in Georgia

The International Finance Corporation (IFC) is pledging to loan Georgia $8.5 million USD (16 million GEL) and to mobilise a parallel loan of €5 million (11 million GEL) from Rabobank for the expansion of Georgia’s sole glass bottle manufacturer, Mina.

The IFC is a member of the World Bank Group that offers investment, advisory, and asset management services to encourage private sector development in developing countries.

IFC said the loan would help Mina, one of the leading employers in Georgia, take advantage of favourable market opportunities and increased demand by expanding its production lines and boosting growth.

The project was also expected to help enhance Mina’s competitiveness through renovation and equipment upgrades, along with energy and resource efficiency investments.

Meanwhile IFC Regional Manager for the South Caucasus Thomas Lubeck said its investment was part of the company’s strategy to support sectors where Georgia had comparative advantages and which had the potential to create jobs, benefit the economy and expand exports.

"It also supports South-South investment, which is a strategic priority for IFC because of its development impact."

IFC made its first investment in Mina in 1999 to help increase exports, enhance energy efficiency, and raise environmental practices to international standards.

Meanwhile, CEO of Rabobank in Istanbul Guray Alpkaya said: "Rabobank is pleased to be able to help long-term client Anadolu Cam [the parent company of Mina] reinforce its leadership in the region’s glass manufacturing sector."

"The company is an excellent example of supporting regional cooperation, job creation, and economic development."

Mina produces glass bottles for the beverages market – a priority export sector for Georgia, which currently largely relies on imported bottles. The investment is set to generate significant corporate income taxes for the state budget and safeguard jobs in an area with limited employment opportunities.

Mina is owned by Anadolu Cam, the glass packaging arm of Sisecam, which is a leading Turkish producer of glass products worldwide.

Georgia became an IFC member in 1995. Since then IFC has invested $810 million USD in 60 projects across various sectors and supported regional projects developed in Georgia. IFC has also implemented a number of advisory projects focused on the development of the private sector.

Meanwhile Rabobank Group is a Netherlands-based international financial services provider operating on the basis of cooperative principles with a predominant focus on providing all finance services in the domestic market. Internationally the Group's focus is on food and agriculture. The organisation has approximately 55,000 employees worldwide and operates in 40 countries.