TBC Bank, TBC Broker and Asian Development Bank (ADB) completed the transaction to the amount of GEL 100 million. The 3 year local currency facility will enable TBC Bank to finance micro, small and medium-sized enterprises in the country’s regions.
This is the largest-ever local currency loan granted to a Georgian bank. ADB obtained the local currency funds through a private placement of GEL-denominated bonds arranged by TBC Broker, a subsidiary of TBC Bank.
“We are delighted to be a part of this landmark transaction which is of great importance not only for the financial sector but the Georgian economy as a whole. These funds will enable TBC Bank to further expand its operations in the regions and provide local currency financing to micro, small and medium-sized businesses. We place great value on our long-standing relationship with ADB and look forward to further successful transactions in the years to come,” commented Vakhtang Butskhrikidze, CEO of TBC Bank.
ADB issued the 3-year bonds at par, with a floating rate coupon that resets quarterly based on National Bank of Georgia’s 3-month Certificate of Deposit yield. The bonds will mature on 15 February 2018.
“We are pleased to offer a product that eliminates currency risks and stimulates private investment and employment throughout Georgia,” said Todd Freeland, Director General of ADB’s Private Sector Operations Department.