JSC Bank of Georgia signs GEL 100 million 5-year loan agreement with IFC
Bank of Georgia Group PLC («the Group«) announces that JSC Bank of Georgia (the “Bank” or “Bank of Georgia”) and the International Finance Corporation (“IFC”), a member of the World Bank Group, have signed a GEL 100 million loan agreement with a maturity of 5 years.
The facility will support the local currency needs of Georgian micro, small and medium sized enterprises (MSMEs). The investment is supported by the Women Entrepreneurs Opportunity Facility, a pioneering global initiative by IFC and Goldman Sachs Foundation to expand access for women entrepreneurs. Under the facility, 25% of the loan is dedicated to serve female entrepreneurs. IFC will raise the local currency funds through a private placement of GEL-denominated bonds to be arranged by Galt & Taggart — a wholly owned brokerage subsidiary of the Group. The first transaction under this facility was signed between the Bank and IFC in August 2019.
Sulkhan Gvalia, Bank CFO commented: “I am very pleased that Bank of Georgia and IFC continue working on attractive local currency facilities, aimed at boosting our capacity to offer GEL-denominated funds to the micro, small and medium sized business segment and increase our support to the female-led enterprises. This is our second successful local currency deal equipped with the Women Entrepreneurs Opportunity Facility. I would like to thank our partners for being reliable supporters and advocates of local currency lending to MSMEs in the country through Bank of Georgia. On the back of further de-dollarisation of the Georgian economy, this local currency facility will further strengthen our position as a leading local currency lender on the Georgian market.”
Jan van Bilsen, IFC Regional Manager for the South Caucasus, said, “Our continued cooperation with Bank of Georgia will help address one of the key barriers to private sector development in Georgia – access to local currency financing. This project is another step forward in supporting small businesses, which represent the backbone of the country’s economy.”
“Women entrepreneurs have real potential to impact future growth in emerging markets, which is why we are focused on closing gaps in access to finance and education for women-owned businesses,” said Charlotte Keenan, Global Director of Goldman Sachs 10,000 Women. “We are pleased to continue to support the Bank of Georgia as it expands lending to women-owned businesses and helps to close the $2.1 billion finance gap in Georgia.”
(с) Banknews
30 Июнь, 2022 at 08:41
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.”