Bank of Georgia Secures USD10 Million Loan In Capital Strength Push.
(Alliance News) - FTSE 250-listed lender Bank of Georgia Group PLC said Monday its banking subsidiary entered into a USD10 million loan deal with the European Fund for Southeast Europe in order to boost its capital position to extend lending.
The EFSE uses a public-private partnership model to promote economic development Southeast Europe with development finance, particularly to micro and small enterprises and private households, via financial institutions.
The subordinated loan agreement between JSC Bank of Georgia and the EFSE has a maturity of 10 years and qualifies for tier two capital under the Basel Three framework introduced recently in Georgia. The loan will, therefore, "further improve the overall capitalisation of the bank".
"I am pleased to see that our long-term partnership with EFSE has yielded our yet another transaction which is aimed at further improving our capital position under the Basel Three regulations and will support further lending growth while maintaining strong capital ratios," Bank of Georgia Chief Executive Officer Archil Gachechiladze said.
"This subordinated loan facility is our latest transaction, in 2019, dedicated to capital optimisation, following the issuance of USD100 million additional tier one capital notes, and the repayment of a USD65 million subordinated loan, earlier this year, to optimise our cost of funding," Gachechiladze added.
"With an ever stronger and diversified capital structure, we are well-positioned to continue growing our customer lending in 2019 and beyond," Gachechiladze continued.
Shares in Bank of Georgia were 0.9% lower at 1,484.00 pence in London on Monday.
By Ahren Lester; firstname.lastname@example.org
Copyright 2019 Alliance News Limited. All Rights Reserved.
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|Date:||Jul 1, 2019|
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