REG - TBC Bank Group PLC - TBC signs loan guarantee agreements with EIB Group <Origin Href="QuoteRef">TBCG.L</Origin>

TBC BankAnnouncement

29/11/2017 14:05

RNS Number : 8803X
TBC Bank Group PLC
29 November 2017
TBC Bank signs EUR 94 million in loan guarantee agreements with EIB Group
TBC Bank Group PLC ("TBC PLC") announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed two guarantee agreements in the amount of EUR 94 million with the European Investment Bank Group (EIB and EIF):
(i)an InnovFin agreement in the amount of EUR 80 million for innovative Georgian small and medium-sized enterprises (SMEs) and small mid-caps; and 
(ii)a EUR 14 million guarantee agreement under the EU4Business initiative targeting small loans to SMEs.
The InnovFin guarantee agreement covers 50% of each loan disbursed by TBC Bank under InnovFin guarantee. The second guarantee transaction covers 70% of each loan disbursed by TBC Bank under EU4Business.
Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank, said: "The signing of the two guarantee agreements marks a significant milestone in our partnership with the European Investment Bank Group. The size and structure of the products will allow TBC Bank to accelerate financing of Georgian MSME and small mid-caps through reducing credit risk. The introduction of guarantee facilities to the Georgian financial sector is an important trigger to foster further growth of the economy and support MSME development. We are delighted to continue our successful partnership with EIB and EIF with the introduction of these innovative products and look forward to more transactions in the future".
EIB Vice-President Vazil Hudk commented: "The support of the EIB Group to small and medium sized businesses in Georgia will strengthen the competiveness of this sector so it can better contribute to growth and job creation. Furthermore, this sector is not only significant from an economic point of view but is also important for further development of Georgia's middle class which contributes to political stability and improved living standards in the country". 
Commenting on the signature, the EIF's Chief Executive, Pier Luigi Gilibert, said: "I welcome the signature of the two guarantee agreements in Georgia. TBC Bank is a leading Georgian bank with a strong focus on lending to SMEs and small mid-caps. Today's agreement will enable the Bank to expand its financing activities, to benefit Georgian companies." 
For further enquiries, please contact:
Head of Investor Relations
Anna Romelashvili
ir@tbcbank.com.ge
About TBC Bank Group PLC ("TBC PLC")
TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG.
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 38.2% of loans and 38.6% of non-banking deposits as at 30 September 2017, according to the data published by the National Bank of Georgia.
About The European Investment Fund (EIF)
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
About The European Investment Bank
The European Investment Bank is the long-term lending institution of the European Union owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
MSCPGGWUGUPMGCB