IFC Supports Bank of Georgia with $90 Million Loan to Boost Growth

Aiming to help expand access to finance in order to further diversify Georgia’s economy and boost growth, the International Finance Corporation (IFC), a member of the World Bank Group, has provided Bank of Georgia with a 10-year subordinated loan totalling $90 million, of which $20 million was provided by the European Fund for Southeast Europe (EFSE), in order to help expand financial services in Georgia and increase the flow of credit to micro, small and medium enterprises (MSMEs).

“I am pleased to announce the completion of one of the largest debt transactions for Bank of Georgia,” said Irakli Gilauri, CEO of Bank of Georgia at the conference held on June 3. “This subordinated loan facility, which qualifies as Tier II Capital under the Basel 2 framework, will improve the overall capitalization of the bank and support our growth　without compromising capital ratios. I would like to thank our long-time partner IFC for continuous collaboration,” he continued. 　

The financing will help the bank to expand its already large MSME customer base and encourage growth in its retail banking business. It will also contribute to the bank’s strategic goal of supporting entrepreneurship in Georgia.

“The loan package will help Bank of Georgia to finance more small businesses, which are a driving force for development but often lack the capital to grow,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus. “This project is yet another step forward in implementing our strategy in Georgia – one pillar of which focuses on mobilizing our partners’ resources to help expand the financial sector, boost access to finance, and reduce poverty,” he added.