10/21/2021 | Press release | Distributed by Public on 10/21/2021 04:39
TBC Bank Group PLC ("TBC PLC") announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed a loan agreement in the amount of EUR 25 million equivalent in GEL with the European Bank for Reconstruction and Development ("EBRD"). The facility is a joint financial instrument of the EBRD and the European Union ("EU") under its EU4Business initiative and is available for financing sustainable investments in technology and equipment.
This funding will enable TBC Bank to finance long-term investments by Georgian SMEs in upgrading their products and services in line with EU standards and thereby enhance their competitiveness on local as well as international markets. Facility is complemented with EU grants and a free technical assistance that will further support SMEs to successfully implement their investments.
Vakhtang Butskhrikidze, CEO, TBC Bank, commented:
I would like to express my gratitude to the EBRD and the EU for their continuous support and successful partnership. The EU4Business-EBRD credit line has great importance for our country's economy, as it enables local businesses to benefit from the opportunities offered by the Deep and Comprehensive Free Trade Area ("DCFTA") between Georgia and the EU. In addition, by providing local currency funding, the EBRD helps to reduce our dependence on borrowing in foreign currencies, thus protecting business owners from direct exposure to exchange rate risk.
About the EBRD
The EBRD is a leading institutional investor in Georgia. Since the start of its operations there, the Bank has invested more than €4 billion in 265 projects in the financial, corporate, infrastructure and energy sectors, with 79 per cent of these investments in the private sector.
About the EU
The EU has been supporting SMEs in Georgia through the EU4Business initiative since 2009. With almost 50 different projects active with a total budget of more than €320 million, the EU is the largest foreign supporter of private-sector development in Georgia. These efforts are bringing results - in 2019 alone, more than 36,000 SMEs in Georgia were supported, creating an estimated 30,000 new jobs and generating an estimated €400 million of extra income. EU4Business is one of the key tools used by the EU to support economic recovery from the Covid-19 pandemic, with many programmes receiving financial top-ups and having lower eligibility criteria than in the past in order to assist as many SMEs as possible.
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About TBC Bank Group PLC ("TBC PLC")
TBC Bank Group PLC ("TBC PLC") is a public limited company registered in England and Wales. TBC PLC is the parent company of JSC TBC Bank ("TBC Bank") and a group of companies that principally operate in Georgia in the financial sector and other closely related fields. TBC PLC also recently expanded its operations in Uzbekistan. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of the FTSE Small Cap Index. It is also a member of the FTSE4Good Index Series and the MSCI United Kingdom Small Cap Index.
TBC Bank, together with its subsidiaries, is a leading universal banking group in Georgia, with a total market share of 38.1% of customer loans and 37.8% of customer deposits as of 30 June 2021, according to data published by the National Bank of Georgia.