6th Feb 2014 11:34
LONDON (Alliance News) - The holding company of JSC Bank of Georgia, Bank of Georgia Holdings PLC, Thursday said the bank has secured a USD65 million subordinated loan facility from a fund managed by the International Finance Corporation as it looks to repay more expensive debt facilities and strengthen its capital position.
The IFC, part of development institution the World Bank, holds a 5.06% stake in Bank of Georgia Holdings and has previously provided financing to the company, both last year and in 2012.
The facility, which has been provided the IFC Capitalization Fund, managed by IFC Asset Management, has a maturity of 10 years.
"The subordinated loan facility, which qualifies as Tier II Capital will improve the overall capitalisation of the Bank, while at the same time help to drive down our cost of funding as it enables us to repay more costly subordinated facilities," Irakli Gilauri, chief executive, said in a statement.
Bank of Georgia Holdings shares were Thursday quoted at 2,285.00 pence, up 5.00 pence, or 0.2%.
By Samuel Agini; [email protected]; @samuelagini
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