The FINANCIAL — In the future TBC Bank will be a company which will mainly focus on large and medium-sized companies, international organizations, individuals with high and medium incomes and establish and develop with them long-term partnership relations, according to the new vision of TBC Bank’s shareholders and management. The bank said last week it plans to develop the retail banking service and have 150,000 retail bank consumers by 2008.
Private entrepreneurs in Georgia are set to benefit from a USD 35 million loan the European Bank for Reconstruction and Development is extending to TBC Bank. The fund would be used to provide small and medium-sized enterprises with medium to long-term finance, for which there is growing demand.
“This is an additional possibility for EBRD to provide TBC Bank with a USD 35 million loan. I want to mention that there is financial crisis on the world market. EBRD is interested in sustaining the bank’s financial position on the market to support small and medium-sized enterprises,” Michael Davey, a representative of ERBD in the Caucasus, declared to The FINANCIAL.
The loan to TBC underlines the EBRD’s commitment to the country’s future development and promotion of the private entrepreneurship in the country. The EBRD and TBC have been partners since 1996, when a first USD 3million SME credit line enabled TBC to finance 27 Georgian SMEs in various sectors of the economy.
“Today TBC Bank and EBRD have signed an agreement on extending TBC Bank with USD 33 million. This credit line is very important for TBC Bank and this support would be used for providing small and medium-sized enterprises. Mostly these are year duration loans. USD 15 million will be used for financing small and medium-sized enterprises,” Paata Gadzadze, First Deputy General Director of TBC Bank, noted.
TBC Bank JSC is a leading universal bank operating in Georgia and Azerbaijan. The bank offers a wide range of banking products and is owned by International Finance Corporation (IFC), German Investment and Development Company (DEG), and Georgian individuals.
TBC Bank was established in 1992; within a decade it became one of the largest banks in Georgia, maintaining its position ever since and holding 25.3% of the country’s banking assets, 26.4% of the country’s credit portfolio and 25.0% of the country’s banking deposits.
TBC Bank’s outstanding performance indicators reflect superior growth in the bank’s franchise, strong increase in business lending and retail funding, the bank’s good risk management track record, improving operating environment and well-diversified funding base. TBC Bank capitalized on its greater mobility and faster decision-making to gradually gain a substantial market share. The bank has positioned itself as a bank with a young and progressive-minded professional management team.
TBC Bank is the first Georgian company to receive an international rating. In 2007 international rating agency Fitch Rating upgraded TBC Bank’s long-run rating from B to B+. For the first time the Moody’s Investors Service agency bestowed long-run credit ratings of B3 and Baa 3 for foreign currency and local currency respectively. TBC Bank serves both retail and corporate markets. Its shareholders are IFC, DEG and a group of Georgian businessmen.
The EBRD, one of the largest investors in Georgia’s private sector, has to date signed a total of 100 investment projects in the country covering energy, transport, agribusiness, general industry and banking for a total commitment of almost EUR 520 million.
Founded in 1991, the European Bank for Reconstruction and Development (EBRD) uses the tools of investment to help build market economies and democracies in 27 countries from central Europe to central Asia.
The EBRD is owned by 61 countries and two intergovernmental institutions. Despite its public sector shareholders, it invests mainly in private enterprises, usually together with commercial partners.
EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with publicly owned companies to support privatization, restructuring state-owned firms and improvement of municipal services.
Last week EBRD said it will provide Bulgarian Postbank with a EUR 25 million credit line for on-lending to Bulgarian small and medium-sized enterprises (SMEs). The loan comes under the EU/EBRD SME Finance Facility and will be complemented by grant support from the EU to include technical assistance support.
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