Project detail - JSC TBC BANK

JSC TBC BANK

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Who is our client

JSC TBC Bank was established in 1992 and is headquartered in Tbilisi. They are the number two bank in Georgia in terms of total loans and are the lead bank in terms of retail deposits, with a strong and growing focus on micro-, small- and medium-sized enterprises (MSMEs). TBC Bank is a longstanding FMO client, and was provided a large financing package from development finance institutions in 2009 through which FMO also became a shareholder in the bank. TBC Bank is a universal bank with leasing and microfinance subsidiaries and a small subsidiary in Azerbaijan. The bank holds a BB-/Stable and a B1/Stable rating from Fitch Rating's and Moody’s, respectively.

Funding objective

Together with two other participants, FMO made a 10-year (5-year grace) subordinated loan to TBC Bank for a total amount of US$35 million. The purpose of the financing is to provide Tier II capital to enable the bank to maintain its growth trajectory while continuing to comfortably meet the local regulatory capital requirements. Through this transaction FMO mobilized a fellow development finance institution, Swedfund, and a commercial investor, Cordiant, thereby diversifying TBC’s funding base and acting as trusted intermediary for partner institutions as they newly venture into the Georgian financial sector. Through this financing, FMO helps stimulate Georgia’s economic growth and job creation in the private sector.

Why we fund this project

TBC Bank is a bank with universal coverage, a strong brand, experienced management and a track record of good performance: asset quality, deposit base and profitability. However, commercial long-term funding is scarce in Georgia, even for a well-performing, well-governed institution such as TBC. The confidence reflected in the long tenor and large amount of the facility provided by FMO and its syndicate partners will help TBC attract long-term funding from other parties as well, while providing a strong buffer to support future growth of the bank.

More investments

Date Total FMO financing
2/21/2020 EUR 0.02 MLN
10/23/2018 GEL 103.00 MLN
10/19/2017 USD 40.00 MLN
10/19/2017 USD 17.50 MLN
12/21/2016 USD 25.00 MLN
8/2/2013 USD 10.00 MLN
Region
Europe & Central Asia
Country
Georgia
Sector
Financial Institutions
Signing date
8/2/2013
Total FMO financing
USD 5.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B