TBC Bank local currency loan for SMEs (Georgia)
BSTDB provided a loan of GEL 120 million (equivalent of USD 50 million) to TBC Bank to finance the investments and working capital needs of Georgian small and medium-sized enterprises (SMEs).
This is the second local currency SME facility extended by BSTDB to TBC Bank since 2015, bringing the total amount to the equivalent of USD 70 million.
By financing in local currency for Georgian SMEs, BSTDB helps to overcome the foreign exchange rate fluctuation risk, a challenge faced often by businesses and contributes to the program of the Georgian Government to de-dollarize the banking sector.
BSTDB cooperates with TBC Group since 2003, having provided over USD 162 million in revolving trade finance, SME finance and leasing facilities.
The new loan to TBC Bank will support the development of small and medium businesses in Georgia and will have a positive impact on poverty alleviation by stimulating self-employment, creating new jobs and generating income.
Being a local currency loan backed by the issuance of a Georgian Lari-denominated bond, the operation is innovative and has a positive demonstration effect.
BSTDB amount: GEL 120 million
Type of financing: loan for SMEs
Maturity: 3 years