The European Bank for Reconstruction and Development (EBRD) placed GEL 157,500,000 million bonds through TBC Capital

22 Jul, 2021

The European Bank for Reconstruction and Development (EBRD) placed GEL 157,500,000 million bond through TBC Capital. The term of the placement is limited to 18 months and the emission was entirely purchased by TBC Bank.


For TBC Bank, this transaction was the second tranche of a USD 100 million unsecured financing, available in USD, as well as in Georgian Lari. The financing was a part of EBRD’s aim to support Georgia to overcome the crisis caused by the COVID-19 pandemic. The stated amount will be allocated to the needs of the borrowers, mainly for funding small and medium sized businesses as defined under EBRD’s sustainable development policy. This project will help TBC to continue financing regional, as well as urban businesses in the future.


With transactions like this, EBRD shows its commitment to investment activities in Georgia. EBRD also continues to support local financial institutions and helps development of the Georgian capital markets, especially with placements denominated in local currency, which are badly needed.


Vakhtang Butskhrikidze, CEO of TBC Bank, commented: "I am very pleased to continue successful cooperation with our long-standing partner EBRD, which has been supporting the bank for many years. Granting the unsecured funding, with the multicurrency option, during the global pandemics is a testament to the trusted working relationship we have formed.  Local currency funding is especially important for the Georgian financial sector as it decreases the dependency upon borrowing in foreign currencies and protects customers from direct exposure to exchange rate risk. I would like to thank TBC Capital for the contribution to successful closure of the bond issuance."


Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus, said: “The EBRD remains an important partner in Georgia during the Covid-19 crisis and the financing is part of the efforts to support the recovery. TBC Bank is our longstanding client and is very well placed to channel EBRD funds to companies that are going through this unprecedented period of volatility. Getting financial help to businesses in local currency is essential for keeping the economy going.”


The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €4.2 billion in 263 projects in the financial, corporate, infrastructure and energy sectors, with 87 per cent of these investments in the private sector.


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