TBC and BSTDB Sign GEL 120 million Loan Agreement

RNS Number : 0203S

TBC Bank Group PLC

20 June 2018

 

TBC Bank and BSTDB Sign GEL 120 million Loan Agreement

TBC Bank Group PLC ("TBC PLC") is pleased to announce that its subsidiary JSC TBC Bank ("TBC Bank") and the Black Sea Trade and Development Bank (BSTDB) have signed an agreement in the amount of GEL 120 million. The 3 year local currency SME Loan facility will enable TBC Bank to finance small and medium-sized enterprises in Georgia. BSTDB has obtained the local currency funds through a public placement of GEL-denominated bonds arranged by TBC Capital, a subsidiary of TBC Bank. This is the second local currency SME facility that BSTDB has extended to TBC Bank since 2015, bringing the total amount to the equivalent of USD 70 million. The bonds have been listed on the Georgian Stock Exchange and are the largest public IFI bond placement completed this year.

"We are delighted to continue our successful cooperation with BSTDB. Our partnership, which began in 2003, has provided more than USD 162 million in revolving Trade Finance, SME finance, and leasing facilities to TBC Group. Local currency funding is of great importance for the entire financial sector as it enables us to provide loans in local currency that are increasingly in demand from our customers and will enable TBC Bank to further strengthen its position in the SME segment. This transaction reflects both institutions' commitment to continue cooperation and we look forward to more years of productive partnership. In addition, the issuance of the bonds will support local capital market development", commented Vakhtang Butskhrikidze, CEO of TBC Bank.

"Domestic capital markets are critical to providing long-term, local-currency finance for the private sector-which plays an essential role in job creation and income generation", said BSTDB President, Ihsan Ugur Delikanli. "We are happy to continue successful cooperation with TBC Bank, our long-term partner, to expand access to finance for local entrepreneurs through capital market innovations.  We appreciate the support of the Ministry of Finance and the National Bank of Georgia for the development of our successful local currency lending program in the country". 

For further enquiries, please contact:

Head of Investor Relations

Anna Romelashvili 

[e-mail]

About BSTDB

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The Bank's authorized capital is EUR 3.45 billion. BSTDB is rated long-term "A-" by Standard and Poor's and "A2" by Moody's. For information on BSTDB, visit www.bstdb.org.

About TBC Capital

TBC Capital is TBC Bank's wholly-owned investment banking subsidiary and licensed brokerage firm. In 2017 TBC Capital became an integral part of TBC Bank's Corporate and Investment Banking franchise. Its main lines of business include corporate finance and credit rating advisory, debt and equity capital markets, brokerage, and private research. TBC Capital is also a shareholder in the Georgian Stock Exchange and plays an active role in the development of its infrastructure.

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 37.8% of loans and 38.9% of non-banking deposits as at 31 March 2018, according to data published by the National Bank of Georgia.

 

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