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.”
(с) Banknews
30 Июнь, 2022 at 08:40
JSC Bank of Georgia signs a US$50 million additional tier 1 capital perpetual subordinated syndicated facility agreement
Bank of Georgia Group PLC (the “Group”) announces that its subsidiary, JSC Bank of Georgia (the «Bank» or “Bank of Georgia”) today signed US$ 50 million Additional Tier 1 Capital Perpetual Subordinated Syndicated Facility (the “Facility”), with the European Bank for Reconstruction and Development (“EBRD”) and Swedfund International AB (“Swedfund”) as Lenders. The Facility is callable by the Bank after 5 years from the disbursement date and on every subsequent interest payment date, subject to prior consent of the National Bank of Georgia. On closing, subject to the National Bank of Georgia’s approval, the facility is expected to be included in additional Tier 1 capital of the Bank.
The Facility includes a green component, whereby the Bank is expected to identify and apply amounts equal to the AT1 Capital Loan into Green Economy Transition (GET)-eligible investments. EBRD will also provide a grant for a technical cooperation programme to support Bank of Georgia in its green financing initiatives.
Archil Gachechiladze, Bank of Georgia’s Chief Executive Officer, commented: «I am delighted that our long-standing and very successful partnerships with EBRD and Swedfund have now extended to an inaugural Additional Tier 1 Capital Facility with a green component for Bank of Georgia. This syndicated facility provides the Bank with an opportunity to further diversify its capital structure from a foreign currency perspective, and the green component will enhance our existing environmental and social commitments. I would like to thank EBRD and Swedfund for their support, and hope to have further successful transactions with them in the future.»
Francis Malige, EBRD’s Managing Director, Financial Institutions, commented: “This is EBRD’s first-ever perpetual subordinated Additional Tier I Capital Loan. I am very pleased to sign it with our longstanding partner Bank of Georgia, a bank of systemic importance. This loan will boost Bank of Georgia’s capital base, provide a natural hedge against currency fluctuations and support continuous flow of credit to Georgia’s real economy. I am also particularly happy to commend Bank of Georgia for its commitment to deploy the full amount of the loan to green investments that meet EBRD’s strict eligibility criteria for the Green Economy Transition.”
Maria Håkansson, Swedfund’s Chief Executive Officer, commented: “It is important for us to support a leading and systemically important bank in Georgia. We look forward to continued partnership and collaboration with Bank of Georgia. This is Swedfund’s second investment in Bank of Georgia with the purpose to support financial inclusion and a sustainable green transition. Bank of Georgia has a broad customer base, a well-diversified loan portfolio and strong presence in all major sectors of the Georgian economy, as well as a proven track record of supporting SMEs. Swedfund is investing in parallel with EBRD with the purpose to facilitate the expansion of the Bank’s portfolio of green finance projects.”