BOG Receives US$10mln Subordinated Loan from EFSE

Bank of Georgia Group PLC announces that its subsidiary, JSC Bank of Georgia and the European Fund for Southeast Europe  have entered into a US$10 million subordinated loan agreement with a maturity of 10 years.

The subordinated loan facility qualifies for Tier II capital under the Basel III framework recently introduced in Georgia and will further improve the overall capitalisation of the Bank.

Archil Gachechiladze, Bank of Georgia CEO commented: "I am pleased to see that our long-term partnership with EFSE has yielded our yet another transaction which is aimed at further improving our capital position under the Basel III regulations and will support further lending growth while maintaining strong capital ratios. This subordinated loan facility is our latest transaction, in 2019, dedicated to capital optimisation, following the issuance of US$100 million Additional Tier 1 Capital Notes, and the repayment of a US$65 million subordinated loan, earlier this year, to optimise our cost of funding. With an ever stronger and diversified capital structure, we are well-positioned to continue growing our customer lending in 2019 and beyond."