The 25th of January TBC Bank and Dutch Development Bank (FMO) have entered into an agreement under which FMO and other financial institutions will provide TBC with a subordinated syndicated loan in the amount of EUR 80 million. This loan will strengthen TBC's financial structure and contribute to the bank's long-term sustainability.
The document was signed by TBC Bank General Director Vakhtang Butskhrikidze and FMO Financial Institutions Manager Ruhi Kosgun. The ceremony was also attended by the Ambassador of the Netherlands to Georgia Meline Arakeliani and representatives of the embassies of Denmark and Finland.
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“We are pleased to have another syndicated deal with FMO, under which we will receive financial support from 6 leading European financial institutions. This financing will strengthen TBC Bank's capital position and promote sustainable growth, with a focus on inclusive financing. FMO was our first partner with whom we entered into a subordinated syndicated loan deal 10 years ago. The successful completion of this transaction confirms the strong partnership between our organizations. We thank FMO for making the deal possible and all syndicate members for their contributions. We are especially pleased to begin cooperation with new financial institutions such as IFU, FinnFund and ILX. We hope for even more successful transactions in the future”, – noted Vakhtang Butshrikidze, CEO of TBC Bank.
Six European organizations will provide financial support to TBC
According to the agreement, 6 European organizations will provide financial support to TBC. These include the Finnish Industrial Cooperation Fund (Finnfund), the Danish Investment Fund for Developing Countries (IFU) and the ILX Fund (ILX), which specializes in lending to emerging markets. In addition, long-time partners of TBC Bank take part in the syndicate: BlueOrchard Microfinance Fund (BOMF), Green for Growth Fund (GGF) and FMO, which is also the agent of the transaction. This is the largest syndicate of secondary capital instruments provided by FMO under the new Basel 3 framework.
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“TBC Bank and FMO have a long history of cooperation. TBC Group has earned an excellent reputation due to its strict policies and adherence to international standards. We are proud of this new investment, which will help strengthen TBC Bank's capital and expand its green portfolio. We are also pleased to see TBC begin collaborating with new financial institutions. We thank the TBC team and our investment partners for productive cooperation”, – emphasized Ruhi Kosgun, FMO manager.
