TBC Merges Its Way into the Azerbaijani Market

TBC Bank, has signed a contract with Azerbaijan’s Nikoil Bank to merge, expanding TBC’s share in the Azerbaijani market.

A statement released by TBC Bank on the merger explains that TBC will “facilitate the development and implementation of the strategy of” Nikoil Bank and “use its experience of the Georgian banking sector, including its newly created fully digital ‘Kosmos’ bank, to support the growth of Nikoil Bank in targeted retail markets and lending to small and medium-sized businesses.”

In the agreement, TBC Kredit, TBC’s Azerbaijani subsidiary, will purchase 10% of Nikoil Bank. The deal requires approval from regulators, but is expected to go through.

TBC will be given the option to increase its holdings of Nikoil Bank to 50% + 1 to become the majority shareholder within the next three years.

"I am very glad that TBC Bank became a partner of Nikoil Bank and I look forward to our future cooperation. This would be a very important transaction for TBC Bank, which has succeeded in a competitive Georgian market and can share its vast experience and a wide range of products with Bank Nikoil,” said Vakhtang Buttsikkidze, CEO of TBC Bank.

Nikoil Bank CEO Nikoloz Shurgaia echoed the sentiment, saying "We are delighted to conclude a partnership agreement with TBC Bank, which is the leading Georgian bank with best-in-class opportunities to work with clients and digital opportunities, together we will provide the most advanced services for businesses and people of Azerbaijan.”

TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia. TBC Kredit has been working in Azerbaijan since 1999 as a non-bank credit which focuses primarily on small and medium enterprises and consumer and mortgage loans.

Currently, Nikoil Bank is privately held and provides varied banking services to customers throughout Azerbaijan.

By Samantha Guthrie