Last checked at 15 Oct 2019 13:49
TBC Bank and EFSE sign agreement to boost local currency financing for Georgian households and businesses
In a signing ceremony to mark "The Power of Local Currency Financing" in Chișinău (Moldova), TBC Bank - the largest bank in Georgia - and the European Fund for Southeast Europe (EFSE) signed three loan agreements totalling in excess of EUR 23 million. (c. 77 m GEL)
The funds will be lent to TBC Bank customers spanning micro and small enterprises (MSEs) and private households to finance their future plans using loans in Georgian Lari - reducing dependence upon borrowing in foreign currencies. This will protect business owners and households from direct exposure to exchange rate risk as well as de-dollarising TBC Bank's portfolio.
EFSE Board Chairman Christoph Tiskens said:
"TBC Bank and EFSE have long enjoyed a fruitful, strategic partnership in pursuing our joint goal of expanding access to sustainable financing in Georgia. We believe it is important not only to provide entrepreneurs and homeowners with the resources they need to thrive, but to make these resources available in the same currency with which people conduct their business and personal finances. This is how we invest in secure growth and prosperity in the long term."
Commenting on the announcement, TBC Bank CEO Vakhtang Butskhrikidze:
"We are proud to sign these important agreements with EFSE - a trusted, long-term partner of both TBC Bank and Georgia. Together, we have built a successful and enduring partnership, with more than USD 200 million provided by EFSE in local and foreign currencies over last 8 years. Local currency funding is of critical importance to the Georgian financial sector, helping our banks to provide much-needed loans in Lari to our business and retail customers".
About EFSE
One of the largest development finance funds worldwide, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions.
EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.
Finance in Motion GmbH, Germany, serves as EFSE's advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu For more information on Finance in Motion, please visit: www.finance-in-motion.com
For further enquiries, please contact:
Director of International Media and Investor Relations
Zoltan Szalai
Or
Head of Investor Relations
Anna Romelashvili
ir@tbcbank.com.ge
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 and is a constituent of FTSE 250 Index.
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 38.5% of loans and 41.0% of non-banking deposits as at 30 June 2019, according to data published by the National Bank of Georgia.