Georgian TBC Bank Gets International Support
OREANDA-NEWS. April 14, 2009. As a response to the global financial crisis international financial institutions are joining forces to provide TBC bank, Georgia’s second largest bank, with a funding package of US161 million in loans and equity investment, reported the press-centre of EBRD.
The EBRD contribution will be worth up to US 70 million and include the acquisition of an equity stake for US 36.8 million and the provision of an US 18.5 million subordinated and a US 14.7 million senor loan.
Other participants in the financing package are the International Finance Corporation (IFC) and the Netherlands Development Finance Company. The IFC is already shareholder in TBC, while the EBRD has been providing loans for on-lending and support under its trade finance programme since 1999. Each institution will nominate a representative on the supervisory board of the bank.
The package will help TBC reduce the impact of the global financial crisis, support its leading position in the corporate banking market and increase its activities in the small and medium sized enterprises sector. Maintaining the flow of credit to the real economy is crucial in the current economic climate.
Nick Tesseyman, EBRD Business Group Director Financial Institutions, said the package was “an example how international financial institutions are joining forces to strengthen a bank of systemic importance for the benefit of Georgia’s economy. We are encouraged by the swiftness and decisiveness of the response and see this as an important contribution to support the Georgian economy, which has been badly hit by the current global crisis.”
Badri Japaridze, Deputy Chairman of the Supervisory Board of TBC, said: “As a leading bank in the country TBC Bank’s influence on the Georgian economy is critical. We see the financial package provided to us by our international partners as a confirmation of their strong commitment to our bank and Georgia’s financial sector in general. We highly value the relationship we have developed with these multilateral institutions over the years and regard their investment as a boost which will allow TBC to continue and deepen its activities for the benefit of Georgia’s real economy.”
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