TBC Bank scores £37m loan facility in Georgia

TBC Bank Group strengthened its position in SME lending as its subsidiary JSC TBC Bank on Wednesday agreed a loan facility of 120m Georgian lari (£37m) with the Black Sea Trade & Development Bank.

Georgia's FTSE 250-listed bank TBC said the three-year local currency SME loan facility, which is the second such agreement between the two companies since 2015, will enable it to finance small and medium-sized enterprises in Georgia.

Vakhtang Butskhrikidze, chief executive of TBC Bank, said: "Local currency funding is of great importance for the entire financial sector as it enables us to provide loans in local currency that are increasingly in demand from our customers and will enable TBC Bank to further strengthen its position in the SME segment. This transaction reflects both institutions' commitment to continue cooperation."

BSTDB obtained the funds through a public placement of GEL-denominated bonds overseen by TBC’s subsidiary TBC Capital, with the listing constituting the largest public IFI bond placement on the Georgian stock exchange in 2018.

Ihsan Ugur Delikanli, president of BSTDB, said: "Domestic capital markets are critical to providing long-term, local-currency finance for the private sector-which plays an essential role in job creation and income generation. We are happy to continue successful cooperation with TBC Bank, our long-term partner, to expand access to finance for local entrepreneurs through capital market innovations."

The partnership between the two banks has provided more than $162m in revolving trade finance, SME finance, and leasing facilities to TBC Group since 2003.

As of 1530 BST, TBC Bank Group’s shares were up 0.36% at 1,696.00p.