China Development Bank Loans TBC a Record $50m

Yesterday, TBC Bank Group released a statement announcing a major new partnership with China Development Bank (CDB). CBD will lend $50 million to TBC Bank for “general corporate purposes” and to “help TBC Bank to expand its financing operations for Georgian clients, primarily in the SME and Micro segments including those who directly benefit from the increasing trade with China.” This loan is the largest CDB has ever given to any Georgian recipient.

China is one of Georgia’s top export destinations. The Free Trade Agreement signed between China and Georgia in 2017 gives Georgian products open access to the Chinese consumer market. The economic relationship between Georgia and China “has increased significantly over the past five years with exports to China increasing 8 times and its share in total exports reaching c. 8% in 2017,” according to the TBC press release.

“We are very proud to have completed this inaugural transaction with China Development Bank. Our partnership with CDB is a logical response to the recent positive economic developments between our countries. The transaction reflects both institutions’ commitment to launch a successful cooperation and we look forward to many years of productive partnership,” said Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank.

China Development Bank (CDB), established in 1994, is a state-funded and state-owned development finance institution operating as an independent legal entity under the direct leadership of the State Council. It is the world’s largest development finance institution, and the largest Chinese bank for foreign investment and financing cooperation. CDB serves the Belt and Road Initiative, and deepens cooperation with foreign governments, enterprises and financial institutions in key industries including infrastructure, machinery manufacturing, financial, and agriculture.

TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 37.8% of loans and 38.9% of non-banking deposits as at 31 March 2018, according to data published by the National Bank of Georgia.

TBC serves more than 2.2 million customers in retail, MSME and corporate segments across Georgia. The company employees approximately 7,100 people across its entire distribution network. TBC subsidiaries also operate in Azerbaijan and Israel. TBC PLC is listed on London’s Financial Times Stock Exchange 100 Index  (FTSE 100).


By Samantha Guthrie

Photo: TBC Bank

14 August 2018 13:31