Tbilisi, Georgia, February 6, 2014—The
IFC Capitalization Fund, a fund managed by the IFC Asset Management Company,
is investing $65 million in Bank of Georgia, the country’s largest bank,
to help the bank increase domestic access to finance and foster sustained
"We are happy to partner with Bank of Georgia as it continues to grow
and improve access to finance by expanding its lending operations,” said
Marcos Brujis, Head of the IFC Capitalization Fund.
With its 10-year maturity, the loan will support the bank’s loan portfolio
growth and increase financial inclusion in Georgia by enhancing access
to long-term finance.
“The subordinated loan facility, which qualifies as Tier II Capital, will
improve the overall capitalization of the bank and help drive down our
cost of funding,” said Irakli Gilauri, Bank of Georgia CEO. “I would
like to thank our long-standing partner and shareholder IFC for continuous
collaboration and our funding team for the successful completion of the
Bank of Georgia holds more than a third of the Georgian banking market
in terms of total assets, loans, deposits, and shareholder equity. IFC
is a shareholder of Bank of Georgia Holdings, Bank of Georgia’s UK-incorporated
holding company, which is listed on the main market of the London Stock
"This subordinated loan will enable Bank of Georgia to strengthen
its capital base and continue lending to Georgian companies and individuals,
supporting economic growth and job creation," said Thomas Lubeck,
IFC Regional Manager for the South Caucasus. “This project is another
step in a long and productive partnership between Bank of Georgia and IFC."
Georgia became an IFC member in 1995. Since then, IFC has invested more
than $695 million in 57 projects across various sectors and supported regional
projects developed in the country. IFC has also implemented a number of
advisory projects focused on the development of the private sector.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns, as well as positive development
impact in the countries in which it invests. It manages $6.3 billion of
capital across six investment funds.
About the IFC Capitalization Fund
The IFC Capitalization Fund is a global equity and subordinated debt fund
supported by commitments from IFC and the Japan Bank for International
Cooperation. It aims to strengthen banks considered vital to the financial
system of emerging markets.
Japan Bank for International Cooperation (JBIC) is a policy-based financial
institution wholly owned by the Japanese government, which has the objective
of contributing to the sound development of Japan and the international
economy and society, by conducting financial operation in the following
four fields: Promoting the overseas development and securement of resources
which are important for Japan; Maintaining and improving the international
competitiveness of Japanese industries; Promoting the overseas business
having the purpose of preserving the global environment, such as preventing
global warming; Preventing disruptions to international financial order
or taking appropriate measures with respect to damages caused by such disruption.
For more information, visit www.jbic.go.jp/en.
About Bank of Georgia
Bank of Georgia is the leading bank in Georgia, with more than a third
of the market share based on total assets, total loans, total deposits
and total shareholders’ equity. The bank offers a broad range retail banking,
corporate banking, investment management, brokerage, insurance and healthcare
services to its clients. As of 30 September 2013, the Bank served more
than one million client accounts through one of the largest distribution
networks in Georgia, with 199 branches, including full-service flagship
branches, standard branches and express branches, the country’s largest
ATM network, comprising 486 ATMs, 893 Express Pay (self-service) terminals
and a full-service remote banking platform and a modern call center. For
more information, visit www.bog.ge.