IFC APPROVES US$2.9 MILLION FOR FIRST INVESTMENT IN THE REPUBLIC OF GEORGIA

Amy Conran 
Phone: (202) 473-9119 
Fax: (202) 974-4384 
E-mail: aconran@ifc.org  




WASHINGTON, D.C., May 12--The International Finance Corporation (IFC) has 
approved its first investment in the Republic of Georgia. IFC will invest up to 
US$2.9 million in the equity of the Georgian Glass and Mineral Water Company 
(GGMW). GGMW, a joint venture between the TBC Group of Georgia as well as Dutch 
and French investors, produces and distributes the famous Borjomi mineral water 
which comes from springs in Georgia's Borjomi Valley. IFC's investment will 
help finance a US$10 million investment program to modernize and upgrade an 
existing glass bottle manufacturing plant and two existing mineral water 
bottling facilities. The financing will also provide support to GGMW's 
distribution systems in Georgia and the CIS. 

The Republic of Georgia is known throughout the Former Soviet Union for its 
mineral water resources which are located mainly in the Borjomi Valley. The 
naturally mineralized waters are one of Georgia's most valuable renewable 
natural resources. As recently as the mid-1980s, over 300 million 0.5 litre 
bottles of Borjomi water were sold annually throughout the CIS. However, the 
civil unrest in Georgia following the dissolution of the Former Soviet Union 
brought Borjomi mineral water production to a standstill in the early 1990s and 
only recently have operations been revived. 

"Borjomi mineral water represents one of Georgia's most important potential 
exports to Russia and other CIS states," said Mr. Edward Nassim, Director of 
IFC's Europe Department. "We believe that IFC's investment in GGMW will not 
only assist in the re- establishment of Borjomi as a leading mineral water in 
the CIS but also will help develop Georgia's mineral water industry by setting 
international product and quality standards. IFC also believes that this 
project can serve as a model for the further development of the nascent 
Georgian private sector." 

In addition to IFC's direct investment, the balance of the project cost will be 
provided by existing shareholders and the First Regional NIS Fund, a private 
investment fund partially sponsored by IFC and managed by Baring Asset 
Management. Trust funds were made available by the UK and Dutch governments to 
assess market, accounting, legal and environmental aspects of the project. 

IFC, a member of the World Bank Group, is the largest multilateral source of 
equity and loan financing for private sector projects in developing countries. 

–––––