TBC and AIIB Sign a US$ 100 million loan agreement
Source: RNS
TBC Bank and AIIB Sign a US$ 100 million loan agreement
TBC Bank Group PLC ("TBC PLC") announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed a loan agreement in the amount of US$ 100 million with Asian Infrastructure Investment Bank ("AIIB"), marking AIIB's first ever transaction with a commercial bank in Georgia. The entire facility is available for disbursement in two currencies, including Georgian Lari, thereby improving access to increasing demand for local currency funding.
This facility is designated to finance the business activities of local entrepreneurs, primarily working capital needs and medium-term investments of borrowers, promoting their sustainable economic development. In addition, local currency financing will help to reduce dependence on foreign currency borrowings, protecting business owners from direct exposure to exchange rate risk.
Mr. Vakhtang Butskhrikidze, CEO, TBC Bank, commented:
"We are proud to have completed this inaugural transaction and become the first partner financial institution for AIIB in Georgia. The availability of local currency financing is very important to support the de-dollarization of the Georgian economy and provide the most popular financial products to our business customers, thereby supporting economic growth and job creation in the country. This transaction reflects both institutions' commitment to launching a successful cooperation and we look forward to more years of productive partnership. "
Mr. Konstantin Limitovskiy, Vice President Investment Operations, AIIB, commented:
"This transaction, which falls under AIIB's Covid-19 Recovery Facility, exemplifies our commitment to adapt and innovate in support of our clients. For the first time, AIIB will provide a medium term loan in Georgian Lari (GEL). GEL financing will address the scarcity of local currency funding in the market and support the economic resilience of SMEs.
We are pleased to establish a partnership with TBC Bank, the leading bank in Georgia with a well-earned reputation for excellence in SME finance. AIIB continues to support the real economy in Georgia to maintain recovery momentum. This transaction marks the beginning of a long and mutually beneficial relationship between our institutions. "
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing Infrastructure for Tomorrow-infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 105 approved members worldwide. We are capitalized at US$ 100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients' needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity. We promote high standards by applying our Environmental and Social Framework and Project-affected People’s Mechanism to every project, including TBC Bank's COVID-19 Credit Line Project.
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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 into Uzbekistan. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of FTSE 250 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 38.8% of customer loans and 40.0% of customer deposits as of 30 September 2022, according to data published by the National Bank of Georgia.
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