OREANDA-NEWS. September 15, 2010. The EBRD is increasing the availability of financing to Georgia’s real economy with a financial package worth up to USD50 million to Bank of Georgia for on-lending to local private micro, small and medium-sized enterprises (SMEs) and corporates, reported the press-centre of EBRD.

Bank of Georgia (BoG) is the largest Georgian bank, holding approximately one third of the market share. It offers a broad range of corporate and investment banking, retail banking, wealth management and insurance services to its customers in Georgia, where it has over 140 branches across the whole country, as well as in Ukraine and Belarus. Since November 2006, the BoG is listed on the London Stock Exchange.

The EBRD’s package includes:
A USD 20 million loan under the Bank’s Medium-sized Co-Financing Facility to finance investments and working capital of medium and large-sized Georgian companies. The facility will help BoG address the growing demand for longer-term funding from Georgian enterprises.

A USD 10 million energy efficiency loan for on-lending to private sector industrial entities and residential customers to finance investments aimed at reducing energy consumption. This is the third energy efficiency facility in Georgia under the Caucasian Energy Efficiency Programme that has been developed to encourage enterprises and housing associations to make better use of country’s energy resources.

A USD 20 million SME credit line to provide local entrepreneurs with medium-term financing of up to USD 1 million for development of their businesses. To help SMEs mitigate foreign exchange risks, companies earning revenues in local currency will be able to borrow funds in Georgian Lari.

“We are pleased to continue our successful collaboration with Bank of Georgia. This transaction reiterates the EBRD’s firm commitment to support further development of private businesses in Georgia with longer-term financing and to promote energy efficiency investments”, said Mike Taylor, EBRD Director for Financial Institutions.

“I am pleased that EBRD, our long-time partner, continues to support Bank of Georgia. The Financing Package extended by the EBRD will further increase our competitiveness in issuing long-term loans in Georgia. I would also like to congratulate our funding team for successfully completing this transaction”, noted Irakli Gilauri, Chief Executive Officer.

Since 1995 the EBRD provided BoG with various debt and trade facilitation facilities worth over USD 160 million.

Since the beginning of its operations in Georgia, the EBRD has committed over EUR1 billion million in approximately 129 projects in the financial, corporate, infrastructure and energy sectors.