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Proparco and TBC join forces to support SMEs in Georgia
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The operation consists in a $50 million credit facility to JSC TBC Bank ("TBC"), Georgia's leading bank, which will be dedicated to financing SMEs in the country.
After a first collaboration with TBC 10 years ago and then in 2019 with its subsidiary TBC Leasing, Proparco reiterates its confidence in the Georgian bank to support its development towards the SME segment.
This new operation reinforces Proparco's partnership with the TBC Group, a key banking player in the Caucasus region, while contributing to the support of the Georgian SME fabric, which has been impacted by the Covid-19 crisis. TBC has developed a strong expertise in MSME financing in Georgia: the bank holds up to 35% market share in this segment. The bank also offers innovative products, including loans for women entrepreneurs, loans for innovative companies, for green investments, and for start-ups.
For Stéphane Froissardey, Regional Director for Turkey, Caucasus, Central Asia, Balkans and Eastern Europe, “We are glad to renew our collaboration to support the Georgian SME sector, through a credit facility that will be 100% on-lent by TBC to its SME clients! It will support and encourage the bank's strategy towards SMEs, and strengthen the partnership started between our institutions 10 years ago.”
Vakhtang Butskhrikidze, CEO, TBC Bank, commented: "We are delighted to continue and further strengthen our cooperation with Propacro. This transaction reflects both institutions’ strong commitment to support small and medium-sized enterprises (SMEs) in Georgia, which are one of the most important contributors to economic growth and job creation in the country. This is our second co-operation and we look forward to working with Propacro on many more successful deals in the future.”
The project will thus support Georgia's economic and social development through various positive impacts. Indeed, Proparco's credit facility will enable the financing of SMEs, active in various sectors, including hotel and leisure, agriculture and trade. Supporting SMEs will enable job creation and further economic growth in Georgia.
Through these different impacts, the project will contribute to the SDG 8 (Decent Work and Economic Growth).