The Dutch Development Bank FMO and Credo Bank Sign 100 mln GEL Facility to Support Entrepreneurs in Georgia
FMO, the Dutch entrepreneurial development bank and Credo Bank announced signing of an 100 mln GEL transaction. The facility, offered in local currency, will finance Georgian micro, small and medium size enterprises with special focus on young entrepreneurs.
It is 100% labeled under Reducing Inequalities of the United Nations Sustainability Development Goals. FMO raised long-term local currency funding through the private placement of a GEL-denominated AAA-rated bond in Georgia hence, supporting domestic capital market development and de-dollarization of the economy.
“I would like to express my sincere appreciation to FMO for yet another successful transaction with Credo Bank. We count six years of collaboration and over GEL 200 mln investment in the bank, to improve access to finance especially, in rural areas of Georgia. This benchmark transaction will back micro, small and medium businesses, as well as young entrepreneurs, with affordable, long-term, local currency funding, necessary to their development.” - Zaza Pirtskhelava, Chief Executive Officer of Credo Bank.
“We are pleased to support our longstanding partner Credo Bank impact-driven mission once again with our latest transaction. Not only does this investment directly support the financial inclusion of MSMEs and youth-owned MSMEs—therefore aligning perfectly with our core mandate of reducing inequalities—it also aligns with our strategic goal of increasing our impact in Georgia through financial institutions. We look forward to continuing our collaboration with Credo Bank for the foreseeable future.” - Marnix Monsfort, Director Financial Institutions FMO.
The Ambassador of the Kingdom of Netherlands, Maaike van Koldam, welcomed the transaction as “another important step in FMO’s investment and trust in the Georgian economy. I am particularly pleased that it targets young entrepreneurs in micro, small and medium businesses and is aimed at reducing inequalities. It is difficult times for the Georgian economy, due to COVID and regional developments, including the war in Ukraine. I am glad that FMO in cooperation with its trusted partner Credo Bank can contribute to economic stabilization, inclusive growth and increased employment, specifically for youth in rural areas.
“The Dutch development bank FMO is indeed an outstanding international financial institution and long-standing partner of Georgia, which helps us in development and sustainable growth of the country. This particular GEL 100mln funding with 5 years maturity and the purpose to finance MSME segment and young entrepreneurs is a distinguished transaction because of its importance for Credo bank’s business model. The bank is operating in MSME segment for which long-term funding in GEL is essential. FMO funding to the financial sector provides significant support and contribute to economic growth, job creation, access to finance, positive social and environmental impact for Georgia.” - The Vice Governor of the National Bank of Georgia, Papuna Lezhava