The EBRD is considering the extension of the following facility to Cartu Bank, a medium sized bank in Georgia:
Subscription to new ordinary shares to support the client’s business diversification strategy (both in terms of customer base and in terms of regions) and help to enhance its competitive position in the market.
The operation will support the client’s business diversification strategy across Georgia and help to enhance its competitive position in the market.
The transition impact of this equity investment will mainly arise from institutional development of the bank through changes in corporate governance, strategy and business development, operations and risk management systems. In addition, this investment will strengthen Cartu’s capital base thereby enhancing the ability of the bank to further expand its market share in Tbilisi and the regions and hence facilitate the competition in the banking sector as a whole. Via the MCFF and SME facilities, EBRD’s support of Cartu will add to the overall lending capability of the banking sector in Georgia thereby increasing financial intermediation. The proposed loans will increase the supply of funding to SMEs thereby increasing access to bank finance.
Cartu Bank, the sixth largest bank by assets in Georgia with total assets of USD 373 million and equity of USD 64 million, as of end of 2008.
Up to GEL 36 million (EUR 16.7 million equivalent) purchase of newly issued ordinary shares representing 25 per cent plus one share of the company’s capital and voting rights.
EUR 32.1 million.
TC will be put in place to assist in the implementation of the Institution Building Plan.
George Nozadze, Head of FI Division
39a Chavchavadze Avenue,
Tel: +995 95 22 22 83
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP