BOG signs EUR 50mln loan agreement with EIB

RNS Number : 2883X

Bank of Georgia Group PLC

18 December 2019

 

London, 18 December 2019

JSC Bank of Georgia signs a EUR 50 million equivalent loan agreement with EIB

Bank of Georgia Group PLC announces that its subsidiary, JSC Bank of Georgia (the "Bank" or "Bank of Georgia") has signed a EUR 50 million loan agreement (the "Facility") with European Investment Bank ("EIB") with the maturity of up to 7 years. Up to 50% of the Facility can be drawn in Georgian Lari, while the remaining amount will be denominated in Euros or US Dollars. The local currency tranche is also supported by the Neighbourhood Investment Facility of the European Union. The purpose of the credit is to finance investment projects promoted by micro, small and medium sized (MSMEs) and mid-capitalisation enterprises (MidCaps) in Georgia and support the implementation of projects important for the local private sector development.

Archil Gachechiladze, Bank of Georgia CEO commented: "I am very glad to see that our second transaction with EIB since 2015 has been successfully completed. The multicurrency long-term facility gives us flexibility to utilise the funds according to the currency and maturity needs of our MSME and MidCap clients. Most importantly, it is in our discretion to use half of the funds in local currency lending, which strengthens our positions with the private sector as a leading lender of the long-term GEL denominated financial resources. I would like to thank EIB for their cooperation with us and look forward to having many more successful deals together in the future."

"Support for economic development and smart, sustainable and inclusive growth is a key priority of the EU's work with Georgia," said EIB Vice-President Lilyana Pavlova. "As the EU bank, we are committed to supporting small and medium-sized businesses - and we need the help of local partners to do so. I am therefore happy that with Bank of Georgia, we are extending our cooperation with a strong existing partner of the EIB. SMEs play a significant role in Georgia's economy and our transactions will pave the way for better business prospects for those companies and the country in general."

Name of authorised official of issuer responsible for making notification: Natia Kalandarishvili, Head of Investor Relations and Funding

About Bank of Georgia Group PLC

Bank of Georgia Group PLC ("Bank of Georgia Group" or the "Group" - LSE: BGEO LN) is a UK incorporated holding company, which comprises: a) retail banking and payment services, b) corporate and investment banking and wealth management operations and c) banking operations in Belarus ("BNB"). JSC Bank of Georgia ("Bank of Georgia", "BOG" or the "Bank"), the leading universal bank in Georgia, is the core entity of the Group. The Group targets to benefit from superior growth of the Georgian economy through both its retail banking and corporate and investment banking services and aims to deliver on its strategy, which is based on at least 20% ROAE and c.15% growth of its loan book. 

JSC Bank of Georgia has, as of the date hereof, the following credit ratings:
Fitch Ratings	'BB-/B'
Moody's	'Ba3/NP' (FC) & 'Ba2/NP' (LC)

For further information, please visit www.bankofgeorgiagroup.com or contact:

Archil Gachechiladze	Michael Oliver	Sulkhan Gvalia	Natia Kalandarishvili
CEO	Adviser to the CEO	CFO	Head of Investor Relations
[phone]	[phone]	[phone]	[phone] (9282)
[e-mail]	[e-mail]	[e-mail]	[e-mail]

 This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities

 

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