27th May 2016 08:15
LONDON (Alliance News) - BGEO Group PLC on Friday said it has received a GEL220.0 million loan from the European Bank for Reconstruction & Development.
BGEO, the holding company for Bank of Georgia, said the five-year loan has been secured through the issue of GEL-denominated bonds arranged by its Galt & Taggart subsidiary.
The group said the loan will allow it to issue longer-term local currency loans in Georgia and provide support to small and medium-sized businesses in the country.
"The transaction reflects our longstanding co-operation with EBRD and is of a great importance not only for Bank of Georgia but for the entire financial sector in the country as it enables BOG to provide long-term loans in local currency, meeting existing strong demand for such funding," said BGEO Chief Executive Irakli Gilauri.
"Bank of Georgia is committed to further extending its financing to small and medium size businesses. Furthermore, we are keen to develop financial products and lending practices, to service specifically women-led SMEs, which will ultimately increase their involvement in developing Georgia's private sector," Gilauri added.
BGEO shares were down 1.0% to 2,556.00 pence Friday in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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