Today, FMO signed a loan agreement in the amount of GEL 103 million (eq. USD 40 million) with JSC TBC Bank ("TBC Bank"), a subsidiary of TBC Bank Group PLC ("TBC PLC"). The five-year loan facility will be used primarily to finance young entrepreneurs running micro, small and medium size enterprises in Georgia, as well as young retail customers requiring mortgage loans. The local currency funding will be obtained by FMO through a public placement of bonds on the Georgian Stock Exchange.
"We are proud to have built such a successful relationship with FMO, TBC Bank's long-standing partner. We started our partnership in 2006 and during these 12 years, FMO has provided more than USD 350 million in MSME and mortgage loan financing, as well as local currency and subordinated loans. Local currency funding is of great importance for the Georgian financial sector as it allows us to supply financing for the increasingly high demand in local currently loans and enables us to further strengthen the Bank's leading position in the MSME segment. In addition, a public placement of bonds will further support local capital market development in Georgia. This transaction reflects both institutions' commitment to continued cooperation and we look forward to more years of productive partnership." commented Vakhtang Butskhrikidze, CEO of TBC Bank.
FMO's Chief Executive Officer, Peter van Mierlo commented: "FMO is proud to continue its long-standing and successful relationship with TBC Bank in Georgia. This new transaction will enable TBC to reduce inequality and support financial inclusion, particularly among young entrepreneurs as they will now have access to financial services. This is an important contribution to stimulating job creation in Georgia."
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 JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG.
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 38.3% of loans and 39.5% of non-banking deposits as at 30 June 2018, according to the data published by the National Bank of Georgia.
