11.12.2014 – TBC Bank/Bank Constanta merger process has begun. The merger will be legally registered in January of 2015. This decision was made at the TBC Bank shareholders’ general meeting because of the new challenges that exist on the microfinance market and the high potential for growth in this business.
Bank Constanta, 100% owned by TBC Bank, is the leading financial institution on the microfinance market, and will continue its operations through January. The merger will take place in January, after which, Bank Constanta and TBC Bank will operate as one legal entity.
Following the merger, the Constanta brand will gradually be replaced by the TBC brand. The name, colors and logo of Constanta will be changed. Bank Constanta branches will continue to work under the name TBC Bank-Constanta. Consumers will still be able to use Constanta products. However, the variety of products available will be increased via particular offers from TBC Bank.
Bank Constanta has operated as a commercial bank since 2008. Its strategic are of operations is providing financial services to micro and small enterprises. TBC Bank became the owner of Bank Constanta in 2011. Since then, TBC Bank has invested almost GEL 226 million in the development of Bank Constanta. As a result of this investment, the bank’s total portfolio increased by 400%. This enabled Bank Constanta customers from other cities and regions to receive the necessary financial support for the development of their micro or small businesses.
Currently, Bank Constanta provides financial services to micro and small enterprises through 60 branches located throughout Georgia. The majority of its credit portfolio consists of micro business and agro loans.
“After the merger, micro financing will become a priority for TBC Bank. We believe that we will be able to effectively use our experience to develop the microfinance segment and strengthen our leading position on this market. For Georgia’s financial sector, this means more competition in the microfinance sector, and more competition leads to the development of the country’s economy. For the clients of Constanta, it brings more opportunities, technological progress, a wider variety of products, and stable cooperation. As for the employees of Constanta, for them the merger will create an opportunity for professional development,” stated TBC Bank’s CEO, Vakhtang Butskhrikidze.
In order to carry out the merger smoothly, quickly and effectively, Bank Constanta customers will be informed on a timely basis about the formal procedures related to the merger, in particular, regarding the renewal of the agreements.