The FINANCIAL — TBC Leasing will increase the availability of financing for private businesses in Georgia with a USD 4 million facility from the Black Sea Trade and Development Bank (BSTDB). The three-year facility will be used to finance leases of production equipment and commercial vehicles to small and medium-sized Georgian companies (SMEs).
This is the third leasing facility extended by BSTDB to TBC Leasing, bringing the total amount to USD 10 million. The previous two successfully utilized facilities were provided in 2007 and 2011.
“This is a possibility for TBC Leasing to raise the long term resources and fund small and medium-sized Georgian companies, which is one of the most significant segments for developing the Georgian economy,” said Vakhtang Butskrikidze, CEO at TBC Bank. “The Black Sea Trade and Development Bank has been a very active partner of Georgia. Besides TBC Bank it has been collaborating with other banks in Georgia over the years and this collaboration is very important for all of us. I hope that this agreement between TBC Bank and BSTDB will be another step forward in developing the Georgian economy,” he added.
Since the start of BSTDB’s operations in Georgia, the Bank has cumulatively disbursed over EUR 135 million mainly focused on support for SME and the financial sector development.
“BSTDB is committed to support small business growth in Georgia and in the Black Sea region which is the backbone of market economy,” said Ihsan Ugur Delikanli, BSTDB President. “This is the strategic priority of the Bank which was designed as a result of the tight collaboration of BSTDB and the Georgian Government. Leasing is the perfect tool for the capital investments of companies without a need for mortgaging. Leasing plays a significant role in developing the country’s economy as small and medium businesses will be financially secured. A stronger leasing sector will benefit Georgia’s economic growth by providing small businesses with reasonable funding sources for their investments at a time when businesses continue to face limited access to financing mechanisms,” he added.
“This is the third leasing facility that we have offered to TBC Leasing. Within the frames of our successful cooperation with our partners in Georgia the total volume of leasing that we have invested in Georgia amounts to USD 10 million. The new loan to TBC Leasing complements the BSTDB special SME credit lines provided to Georgian banks. Since 1991 BSTDB has invested EUR 135 million in Georgia which was directed to financing small and medium business in this country,” Delikanli said.
“The new loan extended by BSTDB to TBC Leasing provides increased access to finance for Georgian SMEs through the development of the non-banking finance sector in Georgia,” said Nana Mikashavidze, CEO of JSC TBC Leasing. “Leasing, as a tool for investment in equipment, promotes economic growth leading in turn to the creation of employment, which is very important to the country,” she added.
“This is the third agreement of this kind between TBC Leasing and BSTDB. From 2007 we have been very actively collaborating with the BSTDB and they are always standing ready to continue their collaboration with us. One of the main reasons for the joint collaboration is the development of our target segment, small and medium businesses,” Mikashavidze said.
“From BSTDB’s side there is no limitation when choosing specifically which kind of SMEs should be financed. The main thing is that it really must be an SME. But the understanding and definition of SMEs varies according to different countries. This is the only issue that might be discussed between BSTDB and TBC Bank. As for the SMEs which will be financed by this facility, they will be chosen by TBC Leasing,” said Delikanli.
“There are no specific sectors of SMEs that are a priority for us. We finance quite a wide spectrum of activities like medicine, agriculture and transport. SMEs by our measurement are companies whose annual turnover does not exceed GEL 10 million and whose number of staff does not exceed 200 people,” Mikashavidze said.
“USD 4 million cannot be distributed over just two or three businesses but at least ten business instead. TBC Leasing can fund one SME with about USD 500 thousand,” said Butskhrikidze.
“It is a constant process, receiving the applications from SMEs. This process did not just start after signing this agreement as TBC Leasing has been receiving applications since its establishment,” said Mikashavidze.
TBC Leasing was established in 2003 by the Georgian JSC TBC Bank, which owns 90% of the company. The remaining 10% is owned by the European Bank for Reconstruction and Development (EBRD). TBC Leasing targets small and medium-sized private companies, which seek to acquire fixed assets by leasing. With almost 67% of the market share, TBC Leasing is currently the leading provider of financial lease services in Georgia in terms of assets and portfolio size. The company has a diversified portfolio across sectors, including medicine, agriculture, construction, trade, services, transportation, etc. For additional information, please visit www.tbcleasing.ge.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s.
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