REG - TBC Bank Group PLC - TBC and FMO sign EUR 80 mln Subordinated Facility

TBC BankAnnouncement

26/01/2024 08:45

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RNS Number : 0613B  TBC Bank Group PLC  26 January 2024

TBC and FMO sign EUR 80 million Syndicated Subordinated Facility

TBC Bank Group PLC ("TBC PLC") announces that its subsidiary, JSC TBC Bank
("TBC Bank"), has signed a syndicated subordinated loan agreement in the
amount of EUR 80 million with the Dutch entrepreneurial development bank FMO
and its syndicate members. The loan facility bears a maturity of ten years and
qualifies as Tier 2 capital under the Basel 3 framework. This funding will
strengthen TBC's capital position, increase its long-term resilience, and
support the bank's sustainable growth.

Within this agreement, FMO acted as the mandated lead arranger and will serve
as facility agent as well. FMO has provided funding in syndication with other
5 lenders and participants, including new financiers such as the Finnish
development financier and impact investor, Finnish Fund for Industrial
Cooperation Ltd. ("Finnfund"), the Danish development financier and impact
investor, the Investment Fund for Developing Countries ("IFU") and an SDG
(https://sdgs.un.org/goals) -focused emerging market credit fund, ILX Fund
("ILX"). Existing long-standing partners of TBC Bank, BlueOrchard Microfinance
Fund ("BOMF") and Green for Growth fund ("GGF") were also part of the
syndicate. This is the largest syndicate Tier 2 facility provided by FMO under
the new Basel 3 framework.

Vakhtang Butskhrikidze, CEO of JSC TBC Bank, said: "We are proud to be the
recipient of this landmark facility in partnership with six lenders. This
funding will strengthen TBC's capital position and support its sustainable
growth, with a strong focus on inclusive financing, which is a shared
commitment and priority of all syndicate members. FMO was the first partner
institution for TBC, with whom we successfully accomplished a debut syndicated
subordinated facility a decade ago, and execution of another benchmark
transaction is testament of well-established, strong partnership between our
institutions.  We are particularly proud that this syndicated facility
enables TBC to onboard new investors such as IFU, Finnfund and ILX, which
serves as a good foundation for future cooperation.  We would like to express
our gratitude to FMO for having arranged this landmark transaction and also
thank all syndicate participants for their trust and valuable contributions.
We look forward to executing many more successful deals in the future".

Ruhi Cosgun, Manager Financial Institutions ECA MENA at FMO, adds:  "TBC Bank
is a longstanding client of FMO, over the years resulting in broader
cooperation with entities of the group. The group has excellent reputation
with robust policies in place and adhering to international best standards. We
are therefore very confident and proud to be the lead arranger of this
facility, that also onboards new investors in TBC. The facility will be used
to strengthen the capital base of TBC bank and to enable the increase of the
green portfolio. We want to thank TBC and our investment partners for this
impactful cooperation".

The Ambassador of the Kingdom of the Netherlands, Meline Arakelian, welcomed
the signing of syndicated subordinated loan agreement with the TBC Bank: "The
agreement is another step in FMO's investment in the Georgian economy, which
will contribute to further strengthen the Georgian financial sector. The loan
has a strong focus on inclusive green financing - a shared priority of FMO and
all syndicate members. The agreement signals the Netherlands' strong
commitment to support Georgia's inclusive economic growth and is an example of
our long-standing engagement in Georgia's financial sector".

Barbara Marcussen, Investment director at IFU said: "This is the first time
that IFU joins a syndication led by FMO. Our goal is to support SMEs in
Georgia build efficiency and resilience in light of increasing environmental
challenges that we face globally. We are proud to partner with TBC Bank, a
pioneer in sustainable finance in the country".

Ulla-Maija Rantapuska, Investment Manager of Finnfund said: "Finnfund is
pleased to be part of the syndicated loan, that will enable the growth of
TBC's green loan portfolio. It is great to see that TBC strives to act as a
role model in responsible and climate aware financial service provider,
manifested in its ESG strategy, which targets net zero emissions and sets KPIs
for sustainable loan portfolio".

 

About FMO

FMO is the Dutch entrepreneurial development bank. As a leading impact
investor, FMO supports sustainable private sector growth in developing
countries and emerging markets by investing in ambitious projects and
entrepreneurs. FMO believes that a strong private sector leads to economic and
social development and has a 50+ year proven
track-record in empowering entrepreneurs to make local economies more
inclusive, productive, resilient and sustainable. FMO focuses on three sectors
that have high development impact: Agribusiness, Food & Water, Energy, and
Financial Institutions. With a total committed portfolio of EUR ~13 billion
spanning over 85 countries, FMO is one of the larger bilateral private sector
development banks globally. For more information, please visit www.fmo.nl
(http://www.fmo.nl/)

 

About IFU:

IFU - the Investment Fund for Developing Countries is a Danish impact investor
contributing to green, just and inclusive societies as well as supporting the
Sustainable Development Goals. IFU provides risk capital to companies
operating in developing countries across Africa, Asia, Latin America and parts
of Europe. Investments are made on commercial terms in the form of equity,
loans and guarantees. IFU has co-invested in over 1,300 companies in more than
100 developing countries and emerging markets. Capital under management is EUR
2.1 billion.  Read more at www.ifu.dk (http://www.ifu.dk/)

 

About Finnfund

Finnfund is a Finnish development financier and impact investor. We build a
sustainable future and generate lasting impact by investing in businesses that
solve global development challenges. We invest 200-250 million euros in 20-30
companies in developing countries each year. Our focus sectors include
renewable energy, sustainable forestry, sustainable agriculture, financial
institutions, and digital infrastructure and solutions. Today Finnfund's
investments, commitments, and investment decisions total about 1.22 billion
euros, half of them in Africa. The company has 100 employees based in Helsinki
and Nairobi. For more information, please visit www.finnfund.fi
(http://www.finnfund.fi/)

 

 

For further enquiries, please contact:

Director of Investor Relations

Andrew Keeley

 

Or

 

Head of Investor Relations

Anna Romelashvili

ir@tbcbank.com.ge (mailto:ir@tbcbank.com.ge)

 

About TBC Bank Group PLC ("TBC PLC")

TBC Bank Group PLC ("TBC PLC") is a public limited company registered
in England and Wales. TBC PLC is the parent company of JSC TBC Bank ("TBC
Bank") and a group of companies that principally operate in Georgia in the
financial sector. TBC PLC also offers non-financial services via TNET, the
largest digital ecosystem in Georgia. Since 2019, TBC PLC has expanded its
operations into Uzbekistan by operating fast growing retail digital
financial services in the country. TBC PLC is listed on the London Stock
Exchange under the symbol TBCG and is a constituent of the FTSE 250 Index. It
is also a member of the FTSE4Good Index Series and the MSCI United Kingdom
Small Cap Index.

 

TBC Bank, together with its subsidiaries, is a leading universal banking group
in Georgia, with a total market share of 39.1% of customer loans and 37.5% of
customer deposits as of 30 September 2023, according to data published by the
National Bank of Georgia on the analytical tool Tableau.

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