TBC Bank signs USD 55mn loan agreement with FMO

RNS Number : 5182S

TBC Bank Group PLC

21 December 2016

 

TBC Bank signs two loan agreements with FMO

TBC Bank Group PLC announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed two loan agreements in the total amount of USD 55 million with the Netherlands Development Finance Company ("FMO").

FMO will provide funds through two loan facilities:  a USD 25 million 7 year loan for TBC Bank, and a USD 30 million 5 year financing agreement for its wholly-owned subsidiary, Bank Republic. Subject to mutual agreement of the parties, the loans could be partially or fully converted into local currency in the future. The proceeds will be used to finance investment projects promoted by Micro & SME companies in Georgia. This partnership between TBC Bank and FMO will help further expand the entrepreneurship activities of small and medium size business clients of TBC Bank.

"We are delighted to continue our successful partnership with FMO. These two facilities will help TBC Bank to further strengthen its position in the SME segment by expanding its portfolio in areas of Georgia. We are especially pleased to continue cooperation with FMO, which is a testament to the truly efficient working relationship our respective organizations have formed during last ten years," commented Vakhtang Butskhrikidze, TBC Bank's CEO. 

FMO quote

"For many years TBC Bank has proven to be a prominent and reliable financier of the SME sector, which forms the backbone of the real Georgian economy. FMO is proud to conclude two new transactions with TBC Bank for the further sustainable development of the SME-sector. Finally, FMO deeply treasures its excellent, professional relationship with TBC Bank and remains convinced that TBC Bank will be an anchor point for many years to come" commented Matthijs Laban - Manager Legal Affairs, FMO.  

If you have any questions, please contact:

Head of Investor Relations

Anna Romelashvili 

[e-mail]

About FMO
FMO (the Netherlands Development Finance Company) supports sustainable private sector growth in developing and emerging markets, focusing on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 7.6 billion, FMO is one of the largest European bilateral private sector development banks. For more information, please visit www.fmo.nl.

About TBC Bank Group PLC ("TBC PLC")

TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of TBC Bank on 10 August 2016.

About TBC Bank

TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 29.7% of loans (37.2% with Bank Republic) and 30.6% of non-banking deposits (35.5% with Bank Republic) as at 30 September 2016, according to the data published by the NBG.

 

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