- €6 million loan to TBC Leasing for on-lending to private businesses in Georgia
- EBRD loan to broaden local enterprises’ access to finance
- Supporting resilience of the Georgian economy
The European Bank for Reconstruction and Development (EBRD) is extending a €6 million (or US$ 7.21 million equivalent) loan to TBC Leasing to broaden access to finance for Georgian micro, small and medium-sized enterprises (MSMEs), especially those in the regions.
TBC Leasing is the largest leasing company in Georgia and fully owned by TBC Bank, a long-standing partner of the EBRD. Listed on the London Stock Exchange, it has been successfully financing businesses in all sectors in Georgia for almost 30 years.
The EBRD continues to be a significant partner in Georgia during the Covid-19 crisis. MSMEs form an important segment of the Georgian economy and supporting them in these challenging times remains a priority for the Bank.
Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus, said: “The EBRD is keen to support the development of the leasing market and broaden access to finance for Georgian companies through alternative credit channels. The funds are aimed at small businesses across the country where financing is needed the most, in particular outside of Tbilisi. TBC Leasing is very well placed to channel EBRD funds to companies that are going through this unprecedented period of volatility. Getting financial help to businesses and providing uninterrupted lending is essential for keeping the economy going.”
Nugzar Loladze, CFO of TBC Leasing said: “We are delighted to have the opportunity to cooperate with the EBRD to support local SMEs and increase access to alternative means of financing such as leasing, which is becoming very popular in Georgia. Our role as a leading leasing company in Georgia is to facilitate the process and create a more diverse range of products that will enable local SMEs to benefit from the availability of financing to expand their business activities. Thanks to the EBRD’s active support it is becoming possible to meet our goals and fill the existing gaps on the leasing market in Georgia.”
The EBRD is a leading institutional investor in Georgia. It focuses on promoting stability and expanding products in the financial sector, strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability.
Since the start of its operations in the country, the EBRD has invested over €4.2 billion in 258 projects in the financial, corporate, infrastructure and energy sectors, with 80 per cent of these investments in the private sector.