Bank of Georgia Signs $75 Million Trade Finance Facility with ADB, IFC, Citibank

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The FINANCIAL — Bank of Georgia has signed a $75 million one-year Club Trade Finance Facility (Club Trade Facility) arranged by Citi with the Asian Development Bank (ADB) and the International Finance Corporation (IFC), a member of the World Bank Group. 

This is the fourth Club Trade Facility arranged by Citi for Bank of Georgia, which attracted several international investors during the syndication. 

Bank of Georgia is a leading Georgian bank, based on total assets (33.8% market share), total loans (31.5% market share), and client deposits (31.5% market share) as of 30 June 2017.

Proceeds of this year’s Club Trade Facility will support import and export transactions for top corporate customers of Bank of Georgia, increasing the volume and value of trade transactions in Georgia’s key economic sectors, including agribusiness, transportation, and energy.

“As the leading trade finance business provider in the country, Bank of Georgia puts a great importance on consistently providing the best solutions to its clients,” said Kaha Kiknavelidze, CEO of Bank of Georgia. “This new facility will further strengthen the bank’s position in the trade finance segment and will help us meet the evolving needs of our corporate client base. We are very pleased to once again cooperate with our established partners and I would like to take the opportunity to thank Citi, ADB, and IFC for their continuous successful collaboration.”

“Citi’s global reach and expertise in financing trade flows puts us in the ideal position to help support progress and growth in developing markets,” said Peadar Mac Canna, EMEA Head of Trade Finance at Citi. “By facilitating this landmark Club Trade Facility for Bank of Georgia, we have been able to form a partnership with a number of industry professionals to ensure we can provide the ideal solution for Bank of Georgia’s trade financing needs.”

ADB’s TFP in Georgia has supported over $91 million in trade through 45 transactions since 2011. Out of this, 31% have been SME-related deals.

“Bank of Georgia is one of IFC’s key partners in Europe and Central Asia, and it has played a critical role in expanding trade into new markets and helping local SMEs grow and create jobs,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus. “IFC’s participation in this recent transaction through its Global Trade Liquidity Program is yet another way to ensure the availability of funds to local enterprises, helping facilitate trade and drive job creation.”


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