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Tbilisi, Georgia, April 9, 2009—
IFC, a member of the World Bank Group, is joining forces with EBRD and FMO to support Georgia’s banking sector by investing up to $161 million in TBC Bank to help the bank expand access to finance for local companies.
TBC Bank, has demonstrated resilience, maintained stable operations, and provided reliable client service during the financial crisis. As a result, it provides a sound platform for new investment and future growth. The financial package includes equity, subordinated debt, and senior loans, which will help strengthen TBC’s capital base and provide additional liquidity to support the bank’s on-lending operations to local small and medium enterprises. IFC and EBRD will provide $70 million each for a total of $140 million and FMO will invest $21 million.
“We highly value the relationship we have developed with IFC, EBRD, and FMO over the years,” said Badri Japaridze, Deputy Chairman of the Supervisory Board of TBC Bank. “This investment is significant for us. It will help our bank grow further and will help boost the local economy.”
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said: “This investment is part of IFC’s strategy in Georgia to support the banking sector and to create additional opportunities for private sector development. TBC is well-positioned to meet the needs of its SME and retail clients, and we expect that the bank’s market share will expand as the global financial crisis is resolved. We are pleased that our partner international financial institutions have joined us in supporting TBC, our long-standing client, and I believe that this reflects the confidence that each of our institutions has in the bank.”
In the current fiscal year, IFC has committed over US$215 million in 5 transactions in Georgia’s financial sector. This represents one of the broadest and most systemic efforts that IFC has undertaken in support of any country’s financial sector.
IFC is a shareholder of TBC Bank, which retains a strong position in the Georgian banking sector with about 30 percent of total assets, loans, and deposits. As one of Georgia’s top banks, TBC provides financial intermediation in the economy, contributes to increased competition in the financial sector and serves as a role model for other banking institutions in the market. For more information about TBC bank, visit:
www.tbc.ge
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About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit:
www.ifc.org
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