The European Bank for Reconstruction and Development (EBRD), a multilateral development finance institution, recently committed loans to two members of Georgia’s Tbilisi Business Centre (TBC) Bank Group: one in local currency up to the equivalent of USD 20 million to TBC Bank and another of up to EUR 3 million (USD 3.1 million) to TBC Leasing. The purpose of the “medium- to long-term” loans is to enable micro-, small and medium-sized enterprises (MSMEs) in Georgia to acquire technology that helps them meet EU standards of “product quality, health and safety measures and environmental protection.” The loan agreements also include advisory services for the borrowing institutions and their clients.
Founded in 1992, TBC Bank serves individuals and companies of all sizes. It reports total assets of GEL 24 billion (USD 8.9 billion), total loans of GEL 17 million (USD 6.3 million), total deposits of GEL 14.9 million (USD 5.5 million), one-year return on equity of 26 percent and one-year return on assets of 3.7 percent as of December 2021. Founded in 2003, TBC Leasing reports total assets of GEL 371 million (USD 137 million), net income of GEL 12 million (USD 4.5 million), one-year return on average equity of 29.5 percent and one-year return on average assets of 3.2 percent as of December 2021.
Founded in 1991 and based in the UK, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in funders of MSMEs. The institution disbursed approximately EUR 10.4 billion (USD 11.1 billion) to 413 projects during 2021. EBRD’s shareholders comprise 71 countries in addition to the EU and the European Investment Bank.
By Sheen Gupta, Research Associate
Sources and Additional Resources
EBRD press release on TBC Bank
https://www.ebrd.com/work-with-us/projects/psd/53439.html
EBRD press release on TBC Leasing
https://www.ebrd.com/work-with-us/projects/psd/53249.html
TBC Bank homepage
https://www.tbcbank.ge
TBC Bank annual reports
https://www.tbcbank.ge/web/en/annual-reports
TBC Leasing homepage
https://www.tbcleasing.ge
TBC Leasing annual reports
https://www.tbcleasing.ge/for-investors
TBC Bank Group homepage
https://www.tbcbankgroup.com
Previous MicroCapital article on TBC Bank and TBC Leasing
https://www.microcapital.org/microcapital-brief-green-for-growth-fund-loans-5m-in-local-currency-to-tbc-leasing-to-boost-energy-efficiency-of-smes-in-georgia/
Previous MicroCapital article on EBRD
https://www.microcapital.org/microcapital-brief-ebrd-loans-3-1m-to-krk-of-kosovo-for-microfinance-especially-for-women-entrepreneurs/
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