17th Dec 2019 12:01
(Alliance News) - Bank of Georgia Group PLC said Tuesday its subsidiary has signed a 10-year USD107 million subordinated syndicated loan agreement with a number of lenders, arranged by Dutch development bank Netherlands Development Finance Co.
The lenders involved in the loan agreement to JSC Bank of Georgia include: Deutsche Investitions-und Entwicklungsgesellschaft, the Finnish Fund for Industrial Cooperation Ltd, Obviam, on behalf of the Swiss Investment Fund for Emerging Markets, the Swedish Development Finance Institution - Swedfund International AB, BlueOrchard Microfinance Fund and Symbiotics Group.
The facility will be treated as a bank tier 2 capital instrument, and is expected to improve the bank's overall capitalisation.
Chief Executive Archil Gachechiladze said: "I am pleased to see that our long-standing and very successful partnership with FMO has now extended to this substantial transaction, this time with a subordinated Tier 2 loan facility, which will help us further improve our capital position under the Basel III regulations.
"I would like to thank FMO for arranging the deal in cooperation with our existing and new partner financial institutions, who I would also like to thank for assisting us in our efforts to diversify our capital structure, maintain a strong capital position and remain a leading lender in the country."
Shares in Bank of Georgia were down 1.3% in London on Tuesday at 1,580.00 pence each.
By Paul McGowan; [email protected]
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