3rd Jun 2015 08:11
LONDON (Alliance News) - Bank of Georgia Holdings PLC, the holding company of JSC Bank of Georgia, Wednesday said the bank has agreed a USD90 million subordinated loan with the International Finance Corporation.
Including USD20 million from the European Fund for Southeast Europe, the loan facility is meant to fund the bank in a move designed to diversify Georgia's economy, expand access to finance and boost sustainable growth.
The facility matures in 10 years' time.
"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," Jan van Bilsen, IFC Regional Manager for the South Caucasus, said.
"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, Jan van Bilsen added.
Irakli Gilauri, chief executive, said the financing will help the bank to add to the number of small businesses it calls customers.
"This subordinated loan facility, which qualifies as Tier II Capital, will improve the overall capitalisation of the Bank and support further growth without compromising capital ratios," the CEO added.
Shares in Bank of Georgia were up 1.3% at 1,975.44 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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