BSTDB Supports Georgian SMEs Through Local Currency Loan
Press Release | 05-Aug-2016
The Black Sea Trade and Development Bank (BSTDB) is increasing its support to private businesses in Georgia by extending a local currency SME facility to the Bank of Georgia. In line with its strategy for development of the local capital market and support of the country’s economy, BSTDB has issued a Georgian Lari (GEL) denominated bond.
The proceeds of the GEL 60 million bond issue will be used to finance investments and the working capital needs of local businesses in rural and urban areas of the country. This long term local currency facility will further support the development of Georgian SMEs without creating foreign exchange risk. The maturity period of the loan is five years.
“I am pleased with the opportunity to join forces with BSTDB in our efforts to enhance access to local currency funding for our SME clients. I would like to congratulate BSTDB, Bank of Georgia and Galt & Taggart teams with the successful closure of this important transaction. This local currency loan facility will enable us to enhance the access to longer term local currency financing for our SME clients. It reinforces our commitment to supporting small and medium size enterprises in Georgia and underpins our leading position in the SME sector”, said Murtaz Kikoria, CEO of Bank of Georgia.
“I am pleased to note Galt & Taggart’s role in the successful issuance of BSTDB bonds. Galt & Taggart has become the go-to provider of placement and underwriting services for IFIs and companies alike, as evidenced by our partnership with BSTDB on its first issuance in Georgia. I would like to congratulate the entire team that worked on this important transaction,” commented Archil Gachechiladze, Chairman of Galt & Taggart.
"SMEs are very important to the Georgian economy and this loan will assist them having access to local currency funding. We have an ongoing interest in providing finance in local currency, following the first GEL funding provided in 2015, and we are pleased to sign this loan which, in combination to the GEL Bond issue, will contribute to capital market development in Georgia. It is also our pleasure to re-start our cooperation with the Bank of Georgia, one of the premier banks in the country.
I would also like to express my appreciation to the National Bank and to the Ministry of Finance of Georgia for encouraging this type of funding structure, eliminating FX risks. Georgia will provide a good example and we hope we’ll be able to offer similar products to other countries in the Black Sea region, helping to make their economies and markets stronger and more stable.", said Ihsan Ugur Delikanli, BSTDB President after the signing of the loan agreement.
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JSC Bank of Georgia is the leading Georgian bank with a market share of 33.5% (based on total assets), 32.3% (based on total loans) and 33.2% (based on client deposits). The bank offers a broad range of retail banking, corporate banking and investment management services. As of 31 March 2016, Bank of Georgia served approximately 2.0 million client accounts through one of the largest distribution networks in Georgia, with 266 branches, the country’s largest ATM network, comprising 753 ATMs, 2,627 Express pay (self-service) terminals and a full-service remote banking platform and a modern call center. Bank of Georgia is the only company in Georgia with credit ratings from all three global rating agencies: S&P: ‘BB-’, Moody's: ‘B1/Ba3’ (foreign and local currency), Fitch Ratings: ‘BB-’; outlooks are ‘Stable’.
JSC Galt & Taggart is a wholly-owned subsidiary of Bank of Georgia Holdings PLC (BGEO:LN). It offers a wide range of investment banking and investment management services through its Investment Banking, Asset Management, Brokerage, Wealth Management, and Research units. www.gt.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, Türkiye, 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. For information on BSTDB, visit www.bstdb.org.
Press contact:
Haroula Christodoulou
Phone: +30 2310 290533
E-mail: cchristodoulou@bstdb.org