TBC Bank Signs EUR 35 million Subordinated Loan Agreement with FMO, Swedfund and Cordiant Capital

Press Release: TBC Bank
September 16, 2013

TBC Bank signed a EUR 35 million subordinated loan agreement with its shareholder Dutch development bank, FMO. The loan facility is provided in syndication with the Canadian investor, Cordiant and the Swedish development bank, Swedfund. The transaction will support TBC Bank’s capital adequacy, enabling the Bank to grow further and meet clients’ needs.

FMO is a shareholder and lender of the Bank holding a 5.4% equity stake. In addition, FMO has long been an important provider of finance in Georgia, especially in the financial sector. “With this transaction we further expand our presence in Georgia. Herewith we support TBC Bank in stimulating economic growth and job creation through development of its SME sector,” stated Jurgen Rigterink, CIO of FMO.

“We are delighted to continue our very successful partnership with FMO with the latest subordinated loan transaction. This facility will further strengthen TBC Bank’s tier two capital and help to enhance our position by expanding the fastest growing (M)SME portfolio throughout the entire country,” commented Vakhtang Butskhrikidze, TBC Bank CEO.

About FMOFMO (the Netherlands Development Finance Company) supports sustainable private sector growth in developing and emerging markets, focusing on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks. For more information, please visit www.fmo.nl.

About SwedfundSwedfund was founded in 1979 and provides risk capital, expertise and financial support for investments in the emerging markets of Africa, Asia, Latin America and Eastern Europe. Together with its industrial partners, Swedfund has invested in more than 220 companies during the 30 years of its existence. Swedfund has up to USD 400 million in committed investments as of YE 2012. For more information, please visit www.swedfund.se.

About CordiantFounded in 1999, Cordiant is a pre-eminent manager of emerging market, private sector investments. With more than USD 2.4 billion in capital subscriptions across six emerging market debt and equity funds, Cordiant counts amongst its clients some of the world’s largest institutional investors. Cordiant has been successfully investing across the emerging markets for a decade. For more information, please visit www.cordiantcap.com.