TBC Bank, TBC Broker and the Asian Development Bank (ADB) completed a transaction in the amount of GEL 100 million. The three-year local currency facility will enable TBC Bank to finance micro, small and medium-sized enterprises in the country’s regions.
TBC Bank receives 100 m GEL loan from Asian Development Bank
By Tatia Megeneishvili
Wednesday, February 25
This is the largest-ever local currency loan granted to a Georgian bank. ADB obtained the local currency funds through a private placement of GEL-denominated bonds arranged by TBC Broker, a subsidiary of TBC Bank.
Chief Executive Officer (CEO) of TBC Bank Vakhtang Butskhrikidze said that TBC bank is delighted to be a part of such a landmark transaction.
“This transaction has great importance not only for the financial sector, but the Georgian economy as a whole. These funds will enable TBC Bank to further expand its operations in the regions and provide local currency financing to micro, small and medium-sized businesses. We place great value on our long-standing relationship with ADB and look forward to further successful transactions in the years to come,” stated Butskhrikidze.
ADB issued the three-year bonds at par, with a floating rate coupon that resets quarterly, based on the National Bank of Georgia’s three-month Certificate of Deposit yield. The bonds will mature on 15 February, 2018.
Permanent Representative Mission of the Asian Development Bank in Georgia Keith Julien spoke of the loan’s importance.
“It primarily serves as the development of the capital market in Georgia and its strengthening, but on the other hand, it is important because the resulting income from the bond issue will be used for the development of small and medium, as well as micro production. This also contributes to job creation and the development of companies,” Julien stated.
Director General of ADB’s Private Sector Operations Department Todd Freeland said that ADB is pleased to offer a product that eliminates currency risks and stimulates private investment and employment throughout Georgia.