TBC & EBRD Sign USD 20 mln eq. in GEL Loan Agrmt.

RNS Number : 4875Z

TBC Bank Group PLC

14 September 2022

 

TBC and EBRD Sign a USD 20 million Equivalent in GEL Loan Agreement

TBC Bank Group PLC ("TBC PLC") announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed a loan agreement on local currency funding in the amount equivalent to US$ 20 million with the European Bank for Reconstruction and Development ("EBRD"). The facility is a joint financial instrument of the EBRD and the European Union ("EU"), provided under the EU4Business-EBRD Credit Line programme, and will finance the sustainable investments of local micro, small and medium enterprises (" MSMEs") in technology and equipment.

The transaction, signed by TBC Bank's CEO Vakhtang Butskhrikidze and EBRD President Odile Renaud-Basso, aims to finance local businesses to upgrade their products and services in line with EU standards and thereby enhance their competitiveness on local and international markets. Customers financed under this facility will also receive grant incentives and will benefit from international expertise to implement their investments successfully, funded by the European Union under the EU4Business initiative.

Vakhtang Butskhrikidze, CEO, TBC Bank, commented: "I am delighted to have signed another deal with our strategic partner, the EBRD, under the EU4Business-EBRD Credit Line programme. We have successfully collaborated with the EBRD for more than two decades, and throughout this period achieved remarkable developmental impacts in Georgia. The new facility is very important for our country's economy as it enables local MSMEs to benefit from the opportunities offered by the Deep and Comprehensive Free Trade Area ("DCFTA") between Georgia and the EU. In addition, local currency financing will further support the development of Georgian MSMEs without creating a foreign exchange risk. This credit line has proven to be one of the most popular financing tools, hence we would like to express our gratitude to the EBRD and the EU for extending this  much-needed financial resource to TBC Bank."

About the EBRD
The EBRD is a leading institutional investor in Georgia. Since the start of its operations there, it has invested more than €5 billion in 270 projects in the financial, corporate, infrastructure and energy sectors, with 81 per cent of  these investments in the private sector.

About the EU
Since 2009, the EU has been supporting companies in Georgia through the EU4Business programme.  With almost 50 different projects active with a total budget of over €320 million, the EU is proud to be the largest foreign supporter of private sector development in Georgia. These efforts are bringing results: in 2021 alone, over 34,000 SMEs in Georgia were supported, resulting in an estimated 15,000 new jobs and generating an estimated €120 million of extra income.

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About TBC Bank Group PLC ("TBC PLC")

TBC Bank Group PLC ("TBC PLC") is a public limited company registered in England and Wales. TBC PLC is the parent company of JSC TBC Bank ("TBC Bank") and a group of companies that principally operate in Georgia in the financial sector and other closely related fields. TBC PLC also recently expanded its operations in Uzbekistan. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of FTSE 250 Index. It is also a member of the FTSE4Good Index Series and the MSCI United Kingdom Small Cap Index.

TBC Bank, together with its subsidiaries, is a leading universal banking group in Georgia, with a total market share of 39.1% of customer loans and 40.7% of customer deposits as of 30 June 2022, according to data published by the National Bank of Georgia.

 

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