TBC Bank announces the signing of three agreements with the Asian Development Bank (ADB).
As a result, the Bank received a 10-year subordinated loan in the amount of USD 50 million, which is the first such agreement between TBC Bank and ADB. This transaction will further strengthen TBC Bank’s tier two capital, enabling the Bank to grow in accordance with its strategy. With the second agreement, ADB provided a 5-year USD 50 million senior loan facility which will be dedicated to extending credit to the under-banked small and medium businesses outside the capital city.
The proceeds of the senior loan will fund the investment needs for the micro and small enterprises in the regions of the country. This is the second such partnership between TBC Bank and Asian Development Bank to help further expand MSME lending and entrepreneurship activities in Georgia. The two loan facilities are available for TBC Bank either in Euro, Dollar or Georgian Lari.
The third agreement between the parties is a technical assistance grant of USD 500,000 provided by the ADB in support of TBC’s ongoing SME Academy, the Bank’s flagship project to provide training and advisory services to upgrade entrepreneurship skills and create business solutions for micro and small business across Georgia.
“We are delighted to continue our successful partnership with the ADB. These two facilities and the SME technical assistance support project will help the Bank to further strengthen its position in the MSME segment by expanding its portfolio in rural areas of Georgia, where credit availability is relatively limited at present. We are especially pleased to continue our very productive cooperation with the ADB. With the completion of these transactions, ADB’s total exposure to TBC Bank will amount USD 150 million,” commented Vakhtang Butskhrikidze, TBC Bank’s CEO.
“We a pleased to deepen our relationship with TBC Bank boosting economic development in Georgia’s regions by providing essential advisory and financial services to MSMEs and helping improve income and employment through private investment”, says Rainer Hartel, ADB Director.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – of which 48 are from within Asia and the Pacific and 19 outside. Georgia has been a member country since 2007.