JSC TBC BANK
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
JSC TBC Bank was established in 1992 and is headquartered in Tbilisi. They are the number two bank in Georgia in terms of total loans and are the lead bank in terms of retail deposits, with a strong and growing focus on micro-, small- and medium-sized enterprises (MSMEs). TBC Bank is a longstanding FMO client, and was provided a large financing package from development finance institutions in 2009 through which FMO also became a shareholder in the bank. TBC Bank is a universal bank with leasing and microfinance subsidiaries and a small subsidiary in Azerbaijan. The bank holds a BB-/Stable and a B1/Stable rating from Fitch Rating's and Moody’s, respectively.
What is our funding objective?
Together with two other participants, FMO made a 10-year (5-year grace) subordinated loan to TBC Bank for a total amount of US$35 million. The purpose of the financing is to provide Tier II capital to enable the bank to maintain its growth trajectory while continuing to comfortably meet the local regulatory capital requirements. Through this transaction FMO mobilized a fellow development finance institution, Swedfund, and a commercial investor, Cordiant, thereby diversifying TBC’s funding base and acting as trusted intermediary for partner institutions as they newly venture into the Georgian financial sector. Through this financing, FMO helps stimulate Georgia’s economic growth and job creation in the private sector.
Why do we fund this investment?
TBC Bank is a bank with universal coverage, a strong brand, experienced management and a track record of good performance: asset quality, deposit base and profitability. However, commercial long-term funding is scarce in Georgia, even for a well-performing, well-governed institution such as TBC. The confidence reflected in the long tenor and large amount of the facility provided by FMO and its syndicate partners will help TBC attract long-term funding from other parties as well, while providing a strong buffer to support future growth of the bank.
More investments
| Date | Total FMO financing |
|---|---|
| 8/3/2022 | GEL 300.00 MLN |
| 12/2/2020 | EUR 0.02 MLN |
| 11/27/2023 | GEL 103.00 MLN |
| 10/27/2020 | USD 40.00 MLN |
| 10/27/2020 | USD 17.50 MLN |
| 6/22/2021 | USD 25.00 MLN |
| 9/20/2019 | USD 10.00 MLN |
- Region
- Europe & Central Asia
- Country
- Georgia
- Sector
- Financial Institutions
- Effective date
- 8/2/2013
- End date
- 9/20/2019
- Total FMO financing
- USD 5.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B