Share this page

IFC Supports Bank of Georgia with $90 Million to Boost Growth, Expand Financial Services

Tbilisi, Georgia, June 3, 2015 —IFC, a member of the World Bank Group, is providing Bank of Georgia, the country’s largest bank, a $90 million long-term loan to help expand access to finance, further diversifying Georgia’s economy and boosting growth.
IFC is providing a 10-year subordinated loan, including $20 million mobilized from the European Fund for Southeast Europe (EFSE), to help expand financial services in Georgia, where banking penetration remains low, and increase the flow of credit to micro, small, and medium enterprises (MSMEs).
“I am pleased to announce the completion of one of the largest debt transactions for Bank of Georgia,” said Irakli Gilauri, Bank of Georgia CEO. “This subordinated loan facility, which qualifies as Tier II Capital under the Basel 2 framework, will improve the overall capitalization of the bank and support our growth without compromising capital ratios. I would like to thank our long-time partner IFC for continuous collaboration.”
The financing will help Bank of Georgia, a long-term IFC partner in the region, expand its already large MSME customer base and encourage growth in its retail banking business. It will also contribute to the bank’s strategic goal of supporting entrepreneurship in Georgia.
“The loan package will help Bank of Georgia finance more smaller businesses, which are a driving force for development but often lack the capital to grow,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus. “This project is yet another step forward in implementing our strategy in Georgia – one pillar of which focuses on mobilizing our partners’ resources to help expand the financial sector, boost access to finance, and reduce poverty.”
Georgia became an IFC member in 1995. Since then, IFC has provided a total of about $665 million in long-term finance, including $272 million mobilized from partners, supporting 51 projects across various sectors. In addition, IFC has supported trade worth more than $292 million through its trade finance program. IFC has also implemented a number of advisory projects focused on private sector development.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit .
Stay Connected
About Bank of Georgia
Bank of Georgia is the leading Georgian bank, based on total assets (with a 36.9% market share), total loans (with a 34.7% market share) and client deposits (with a 32.5% market share) as of March 31, 2015, all data based on standalone financial information filed by banks in Georgia with the National Bank of Georgia and includes Privatbank’s market shares. The Bank offers a broad range of corporate banking, retail banking, wealth management, brokerage and insurance and healthcare services to its clients. As of March 31, 2015, the Bank served approximately 1.5 million client accounts through one of the largest distribution networks in Georgia, with 219 branches, the country’s largest ATM network, comprising 554 ATMs, 2,245 Express pay (self-service) terminals and a full-service remote banking platform and a modern call center. For more information, visit .
For more information about the European Fund for Southeast Europe (EFSE), please, visit: