Bank of Georgia Group PLC (LON: BGEO) announced today that its subsidiary, JSC Bank of Georgia has signed a EUR 50 million loan agreement with European Investment Bank with the maturity of up to 7 years. Up to 50% of the Facility can be drawn in Georgian Lari, while the remaining amount will be denominated in Euros or US Dollars. The local currency tranche is also supported by the Neighbourhood Investment Facility of the European Union. The purpose of the credit is to finance investment projects promoted by micro, small and medium sized (MSMEs) and mid-capitalisation enterprises (MidCaps) in Georgia and support the implementation of projects important for the local private sector development.
Archil Gachechiladze, Bank of Georgia CEO commented:
“I am very glad to see that our second transaction with EIB since 2015 has been successfully completed. The multicurrency long-term facility gives us flexibility to utilise the funds according to the currency and maturity needs of our MSME and MidCap clients. Most importantly, it is in our discretion to use half of the funds in local currency lending, which strengthens our positions with the private sector as a leading lender of the long-term GEL denominated financial resources. I would like to thank EIB for their cooperation with us and look forward to having many more successful deals together in the future.”
“Support for economic development and smart, sustainable and inclusive growth is a key priority of the EU’s work with Georgia,” said EIB Vice-President Lilyana Pavlova. “As the EU bank, we are committed to supporting small and medium-sized businesses – and we need the help of local partners to do so. I am therefore happy that with Bank of Georgia, we are extending our cooperation with a strong existing partner of the EIB. SMEs play a significant role in Georgia’s economy and our transactions will pave the way for better business prospects for those companies and the country in general.”
