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Proparco becomes the shareholder of Credo Bank
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Proparco and Credo Bank signed an equity investment agreement based on which Proparco has become a new shareholder of the bank. The investment supports the acquisition of Finca Bank Georgia by Credo and serves as a strong capital base for further growth of the bank.
Credo Bank is the leading bank in the Georgian microfinance market in terms of countrywide presence and the number of clients. It operates 75 service centers and supports more than 337,000 customers across Georgia. The bank’s mission is to provide sustainable financial services to micro, small and medium businesses, with a preference for rural activities and those businesses that create income and employment opportunities
Proparco’s investment will support the growth of the bank over the coming years and help it increase its impact on sustainable development. This operation should support close to 25,000 direct and indirect jobs through more than 130,000 micro-loans. More than half of Credo Bank’s clients being women, this investment will also contribute to women empowerment and qualifies to the 2X Challenge initiative.
“We count more than five years of outstanding partnership with Proparco through GEL 120 million debt investments. In the new role as a shareholder, Proparco will significantly contribute to further strengthening of Credo Bank’s positioning and reinforce our core aim of providing sustainable financial services to micro, small and medium entrepreneurs with special focus on digitalization and delivery of innovative products. With more than 24 years of operation in Georgian financial market, Credo Bank has demonstrated resilience, maintained stable growth and reliable customer services.
This landmark transaction underlines shareholders’ trust in the bank and it being sound platform for new investment and future growth. Here, I would also like to thank our existing shareholders German Access Microfinance Holding AG, the Dutch Triodos Investment Management and Swiss responsAbility Investments AG for their contribution in onboarding a new shareholder.” – said Zaza Pirtskhelava General Director of Credo Bank.
“Since 2015, the partnership between Proparco and Credo Bank has only grown stronger thanks to a shared commitment to the sustainable development of Georgia. Over the years, Credo Bank has proven its strong capacity in bringing financial products and services to entrepreneurs located in outlying or rural areas, including women, thus contributing to two of Proparco's key priorities: financial inclusion and women empowerment. Proparco is very pleased to see the growing impact of Credo Bank's activities on the Georgian economy and its society," said Stéphane Froissardey, Proparco's Regional Director for Turkey, Caucasus, Central Asia, Balkans and Eastern Europe.