The FINANCIAL — TBC Bank managed to attract USD 100 million with the assistance of International Financial Organization Merrill Lynch and funds were raised on the basis of private placement from Western Capital Markets.
“This fund will help us to achieve quite high results and give a possibility to the bank to increase activities on small and medium business, also on physical persons,” Vakhtang Butskhrikidze General Director of TBC Bank, told The FINANCIAL.
According to Butskhrikidze, TBC Group holds 1/3 shares in Georgian investments of the first three months in 2008.
Last week one more standard branch of TBC Bank was opened on 11 Vazha Pshavela Avenue in Saburtalo, and in parallel a press-conference was held on attracting financial resources to the amount of USD 100 million.
In Butskhrikidze’s words, loan purposes are not limited and will be used for the financing of credit projects of larger amounts. The investing of USD 100 million in bank infrastructure will also help to satisfy increasing demands on banking services.
“Merrill Lynch is one of the largest leading financial institutes in the world and is a leading institute in international financial service. The contract concluded between Merrill Lynch and TBC Bank specifies stability of TBC Bank and indicates development of successful and active cooperative policy with the world’s leading financial institutes,” said Butskhrikidze.
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 40 countries and territories and total client assets of almost $2 trillion.
Merrill Lynch offers a broad range of services to private clients, small businesses and institutions, and corporations, organizing its activities into two interrelated business segments – Global Markets & Investment Banking and Global Wealth Management, which is comprised of Global Private Client and Global Investment Management.
As an investment bank, it is a leading global trader, underwriter of securities, derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide.
“USD 50 million supported by Merrill Lynch has already been transferred to TBC Bank. TBC Bank will receive the rest of USD 50 million within 2 weeks,” said Butskhrikidze.
“This is a branch of new design and one of the most modern types in the world. There are no barriers between the clients and the bank employee. Service will be provided in open area so the customer could see the service process,” Nikoloz Khodeli, TBC Director of Service Center N1, on 11 Vazha Pshavela Ave., told The FINANCIAL.
As Khodeli stated, ‘The first new branch was opened by TBC Bank in December 2007. This was the basis of introduction of new banking service and innovation forms in banking sectors. The new branch of TBC Bank openly states its slogan “My Bank is on my side” – where the client and the bank employee are standing together and making the decision.’
There are special places for children in every new branch type. The client coming into the bank with a baby can be provided with uninterrupted service. There is also a VIP room for VIP guests, where they can be served exclusively.
“We intend to open some branches in Azerbaijan in the near future. We are also going to open approximately 40 new standards of branches in Georgia until the end of this year. This month we opened one branch in Signagi and very soon we will also open some branches in Gori, Batumi, Zugdidi, Poti and Kutaisi. “We are planning to open new branches of TBC Bank every week,” noted TBC Bank General Director.
Earlier in March 2008 TBC Bank and AISM presented financial product ‘CAPITAL + ’. This is a brand new offer in the Georgian market. TBC bank and AISM Asset and Wealth Management agreed on an exclusive partnership.
“‘CAPITAL +’ is a innovative product introduced in the Georgian banking market, which will support consumers create maximally diversified and low risk portfolios, with capital investment at the same time in various directions,” Giga Bedinashvili the Director of Investment at TBC bank, told The FINANCIAL.
TBC Bank is the largest Georgian bank holding 25% of total banking assets, 28% of system-wide deposits and 25% of overall loans as of 1H 2006. The shareholders of TBC Bank are International Finance Corporation (31%) and Deutsche Investitions- and Entwicklungsgesellschaft (13%), both of which have increased their stakes in Q106, and Georgian individuals (56%).
International Rating Agency Fitch ratings revised the outlook on TBC Bank which went from Stable to Positive on August 28. At the same time, the agency has affirmed the bank’s ratings at Issuer Default ‘B-’ (B minus), Short-term ‘B’, Individual ‘D’ and Support ‘5’.
According to the rating agency, “A continuation of current trends in respect to both the operating environment and the bank’s financial profile could result in an upgrade.”
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