FMO, the Dutch development bank, has provided a EUR 35 million subordinated loan facility to TBC Bank in Georgia, together with Cordiant, a Canadian investor, and Swedfund, the Swedish development bank. This is a new facility in a long-standing relationship between FMO and TBC Bank.
The transaction was signed on the August 2, 2013. With the support of these two new partners, Cordiant and Swedfund, the capital will allow TBC Bank to further expand, successfully serving the Georgian economy and meeting its clients’ capital and liquidity needs.
TBC Bank is the second largest universal bank in Georgia, with leasing and microfinance subsidiaries and a small subsidiary in Azerbaijan. It is the largest bank in terms of total retail deposits and the second largest in terms of total loans in Georgia. The bank has a strong and growing position serving micro, small and medium enterprises (MSMEs). “This facility will further strengthen TBC Bank’s tier two capital and help to enhance its position by expanding the fastest growing MSME portfolio throughout the entire country,” commented Vakhtang Butskhrikidze, TBC Bank CEO.
TBC Bank was founded in 1992. Its shareholders include two local founders Mamuka Khazaradze and Badri Japaridze (jointly 25.95%) and a strong group of IFIs: EBRD (20.2%), IFC (20.2%), DEG (11.5%) and FMO (5.4%). TBC Bank entered the microfinance segment in May 2011 with the acquisition of Bank Constanta in Georgia. TBC Bank holds a BB- and a B1 rating from Fitch and Moody’s respectively.
FMO has long been an important provider of finance in Georgia, particularly in the financial sector, and has a portfolio of USD 144 mln in the country. “With this transaction we further expand our presence in Georgia,” commented Jurgen Rigterink, the CIO of FMO. “Herewith we support TBC Bank in stimulating economic growth and job creation through development of its SME sector”.
About FMO:
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact:
René de Sevaux
T: +31 70 314 9868
E: r.de.sevaux@fmo.nl
