TBC Bank Group has signed a loan agreement for $50m with Proparco, it announced on Tuesday, ti finance investments and the working capital needs of Georgian small and medium-sized businesses.
The FTSE 250 Georgia-focussed bank said the facility would enable further support to the SME segment in the country, and strengthen its position on the market.
It said the transaction would also further reinforce its partnership with Proparco.
“We are delighted to continue and further strengthen our cooperation with Propacro,” said TBC chief executive officer Vakhtang Butskhrikidze.
“This transaction reflects both institutions’ strong commitment to support small and medium-sized enterprises in Georgia, one the most important contributors to economic growth and job creation in the country.
“This is our second co-operation and we look forward to working with Propacro on many more successful deals in the future.”
Proparco is the private sector financing arm of Agence Française de Développement (AFD) Group.
It provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East.
TBS said Proparco’s focus was on the key development sectors of infrastructure – mainly for renewable energies – as well as agribusiness, financial institutions, health and education.
“We are glad to renew our collaboration to support the Georgian SME sector, through a credit facility that will be 100% on-lent by TBC to its SME clients,” said Proparcp’s regional director for Turkey, the Caucasus, central Asia, the Balkans and eastern Europe, Stéphane Froissardey.
“It will support and encourage the bank’s strategy towards SMEs, and strengthen the partnership started between our institutions 10 years ago.”
At 0912 GMT, shares in TBC Bank Group were up 2.27% at 1,442p.
