OFID participates in syndicated loan agreement totaling US$106.5 million to support MSMEs and trade finance in Georgia

23.10.2017 | E32/2017


Vienna, Austria, October 23, 2017. The OPEC Fund for International Development (OFID) has signed an agreement to participate in a US$106.5 million syndicated term loan to JSC TBC Bank, Georgia (TBC Bank), arranged by the Netherlands Development Finance Company (FMO). OFID’s participation will specifically support international trade finance projects.

Commenting on the loan agreement, OFID Director-General Suleiman J. Al-Herbish said: “The financial sector of a country underpins economic stability and growth; it is central to poverty reduction and development. OFID is committed to supporting international trade. Channeling funds through financial intermediaries such as TBC Bank furthers our reach and impact when it comes to supporting sustainable development. This loan agreement is in line with our commitment to developing countries across the globe.”

Vakhtang Butskhrikidze, CEO of TBC Bank, said: “We are proud to have built such a successful relationship with FMO, TBC Bank’s long standing partner and shareholder, as well as OFID and other participants of the syndicate. The size of this funding clearly indicates the success of our previous syndicated loan and our matured partnership. This large facility will help TBC Bank to further strengthen its leading position in the MSME segment.”

FMO’s Chief Investment Officer Linda Broekhuizen commented: “FMO is proud to have arranged this groundbreaking syndicated credit line for TBC, bringing new investors to Georgia. It will enable TBC to continue its growth and helps support job creation in the country.”

Participants providing US$56.5 million in total include: Symbiotics (through its MSME Bond Platform); Atlantic Forfaitierungs AG; London Forfaiting Company Limited; and undisclosed institutional investors through FMO’s syndications platform.

The agreement was signed on Thursday, October 19, 2017.

About OFID

OFID is the development finance institution established by the Member States of OPEC in 1976 as a channel of aid to developing countries. OFID works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world. It does this by providing financing to build essential infrastructure, strengthen social services delivery and promote productivity, competitiveness and trade. OFID’s work is people-centered, focusing on projects that meet basic needs—such as food, energy, clean water and sanitation, healthcare and education. OFID aims to encourage self-reliance and inspire hope for the future.

About FMO

FMO (the Netherlands Development Finance Company) supports sustainable private sector growth in developing and emerging markets, focusing on three sectors that have high development impact: financial institutions, energy, and agribusiness, food and water. With an investment portfolio of EUR 9.0 billion, FMO is one of the largest European bilateral private sector development banks. For more information, please visit www.fmo.nl


TBC Bank PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank (“TBC Bank”) on August 10, 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG. TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 31.1 percent of loans (or 38.9 percent taking into account TBC Bank's holding in JSC Bank Republic) and 33.0 percent of non-banking deposits (or 37.8 percent taking into account TBC Bank's holding in JSC Bank Republic) as of 31 December 2016, according to the data published by the National Bank of Georgia.