JSC Bank of Georgia signs a US$107 million subordinated club facility agreement

Bank of Georgia Group PLC announces that its subsidiary, JSC Bank of Georgia (the “Bank” or “Bank of Georgia”) has signed a ten-year US$107 million subordinated syndicated loan agreement (the “Facility”) arranged by FMO – Dutch entrepreneurial development bank (FMO) in collaboration with other participating lenders including DEG – Deutsche Investitions- und Entwicklungsgesellschaft, the Finnish Fund for Industrial Cooperation Ltd., Obviam, on behalf of the Swiss Investment Fund for Emerging Market (SIFEM), the Swedish Development Finance Institution – Swedfund International AB, BlueOrchard Microfinance Fund (BOMF) and Symbiotics Group. The Facility is expected to be treated as a Bank Tier 2 capital instrument (upon disbursement and approval of the National Bank of Georgia) under the Basel III framework recently introduced in Georgia and will further improve the overall capitalisation of the Bank.

Archil Gachechiladze, Bank of Georgia CEO commented: “I am pleased to see that our long-standing and very successful partnership with FMO has now extended to this substantial transaction, this time with a subordinated Tier 2 loan facility, which will help us further improve our capital position under the Basel III regulations. I would like to thank FMO for arranging the deal in cooperation with our existing and new partner financial institutions, who I would also like to thank for assisting us in our efforts to diversify our capital structure, maintain a strong capital position and remain a leading lender in the country”.