Project detail - JSC TBC BANK

JSC TBC BANK

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Who is our client

TBC-Bank has an external rating BB- (Fitch ) and B1 (Moody’s). FMO has a long and positive experience with TBC. The bank has performed very well over many years. TBC has grown organically and through other acquisitions (2014, they acquired Bank Constanta, 2016 Bank Republic). Today, TBC bank has a good capitalization, access to capital via their Premier listing on the London Stock Exchange. Finally, it has a sound stable funding, low NPL’s, good quality/ diversification of the loan portfolio and well managed liquidity

Funding objective

By financing the bank, it is able to extend scarce financing and development of the SME-sector in Georgia. OFID’s lending will be earmarked for trade finance for Georgian SME’s.

Why we fund this project

With this transaction, we can support our key-client TBC-bank with long term funding and, through our syndicate, bring new investors to Georgia. Finally, the transaction will catalyze USD 81 mln in commercial capital. The financing will be used to extend scarce financing and development of the SME-sector in Georgia. This will generate more tax income in Georgia. Further new jobs will be created in the country.

Environmental and social rationale

In 2012 TBC-bank put their ESMS in place with the help of IFI’s such as IFC and EBRD. TBC is an E&S category B bank. The ESMS covers the entire portfolio. It is well designed to categorization, risk assessment, for high risk ESAP, and monitoring. The basis are the IFC Performance Standards

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8/2/2013 USD 5.00 MLN
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Website client
http://www.tbcbank.ge/web/ka
Region
Europe & Central Asia
Country
Georgia
Sector
Financial Institutions
Signing date
10/19/2017
Total FMO financing
USD 40.00 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