Dutch development lender FMO is providing a $20 million senior unsecured facility to Georgia-based JSC Microbank Crystal to support the expansion of its micro, small and medium enterprise (MSME) lending portfolio, with a focus on inclusive and green finance.
The facility comprises a $10 million committed tranche and a further $10 million uncommitted portion, offering flexibility as Crystal scales its lending activities.
It also allows for disbursement in either Georgian lari or US dollars, enabling the institution to better match funding with borrower needs and manage currency risk.
The financing comes shortly after Crystal secured a microbank license, marking a turning point in its growth trajectory.
The license allows the institution to accept deposits of up to GEL30,000 and increase its maximum loan size to GEL1 million, expanding its capacity to serve a broader range of clients, including larger MSMEs.
Proceeds from the facility will be fully earmarked for projects aligned with reducing inequalities and green financing criteria.
Crystal will extend loans to youth- and women-led businesses, agricultural enterprises, and micro-borrowers, segments that typically face limited access to formal credit.
The transaction reflects a broader push by development finance institutions to strengthen financial inclusion by supporting regulated lenders as they transition into more formal banking structures, particularly in emerging markets where MSME financing gaps remain significant.
Crystal currently serves around 100,000 clients through a network of 46 branches and has built a strong presence in rural areas, especially in western Georgia, positioning it as a key channel for extending credit to underserved communities.
For FMO, the investment aligns with its dual focus on inclusive growth and climate-related lending, while providing medium-term funding in both local and hard currency to support sustainable portfolio expansion.
