The FINANCIAL — TBC Bank and OPIC – a private foreign investment company – have signed a memorandum, which entitles TBC bank to receive additional $40 million in funds, while OPIC stands as a guarantor for the amount. The sum will be used for financing long term mortgages as well as small and medium sized businesses.
The memorandum was signed by Mamuka Khazaradze, the chairman of TBC Bank Supervisory Board and Robert Mosbacher, the executive director of OPIC. The new credit line will support TBC Bank to further develop financing of individuals and corporate clients.
On August 28th, the international Rating Agency Fitch Ratings revised the Outlook on TBC Bank from Stable to Positive. At the same time, the agency has affirmed the banks’ ratings at Issuer Default ‘B-’ (B minus), Short-term ‘B’, Individual ‘D’ and Support ‘5’.
The change in Outlook reflects the gradually improving operating environment and expanding franchise and scale and improving funding profiles. In addition, the Positive Outlook on TBC’s IDR reflects its adequate risk management and, as a result, a long track record of sound profitability and asset quality, which should be sustainable in the medium term in the absence of significant economic shocks.
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”.
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- und Entwicklungsgesellschaft (13%), both of which have increased their stakes in Q106, and Georgian individuals (56%).
FMO, JPMorgan , DEG and Merrill Lynch as well as the EBRD, IFC and KfW are also the partners of the local banks: TBC Bank.
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