Dutch entrepreneurial development bank FMO placed GEL 34 million bonds through TBC Capital

8 Jun, 2021

On 28 May 2021 FMO (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden) has placed GEL 34 million bonds with TBC Capital acting as a sole Lead Manager. MKD Law was engaged as a legal counsel on the transaction.

The placement was fully purchased by Terabank. The Bank will be able to borrow 95% of the nominal amount of the bonds for refinancing rate from National Bank of Georgia against pledging the mentioned bonds. FMO’s funding will be used to reduce inequalities as the Bank will amongst others further grow its portfolio in the segment Youth.

Through transactions like this, FMO continues its investment activities in Georgia, supporting local financial institutions and the development of the Georgian capital markets. The most recent bond placement by FMO in Georgia was completed in 2019, while the previous cooperation between TBC Capital and the FMO took place in 2018.

“The continued support of FMO towards Georgian financial institutions plays a crucial role in local capital markets development. The transaction is a good example of cooperation between TBC Capital and the issuer, which is another step forward for a future, successful partnership with both local and international financial institutions. Moreover, the transaction is important for Terabank as it has attracted additional GEL financing from an international financial organization which can be used to increase access to GEL funding for Georgian borrowers”, - said Mary Chachanidze, Managing Director of TBC Capital.

“We are very proud at FMO to have extended our Georgian funding program by this fourth transaction since 2018. It shows FMO’s dedication to create impact in our chosen markets”, – said Matthijs Pinxteren, Treasurer of FMO.

"We are pleased to complete this transaction successfully with the FMO. TBC Capital and MKD played an important role to make it happen. With this operation we managed to secure  34 million GEL financing,  which will fully be used to expand the lending activities of Terabank to one of its strategic and most successful priorities – SME business and enhancing its dynamic development”, - said Sophie Jugeli, CFO of Terabank.

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