Superior access to funding Bank of Georgia Group has superior access to both equity and debt capital, which provides flexibility with liability management and is our key competitive advantage in realising our ambition to capture attractive opportunities in Georgia. Galt & Taggart brings corporate advisory, debt and equity capital markets research and brokerage services under one brand and continues to develop local capital markets in Georgia. We are a leader in the local capital market industry through Galt & Taggart and Bank of Georgia custody: • GEL 1.4 billion local bonds placed by Galt & Taggart since 2014 • The only international sub-custodian in the region through State Street, Citi and Clearstream Bank Luxembourg In 2019, Global Finance Magazine named Galt & Taggart Best Investment Bank in Georgia for the fifth consecutive year. In 2018, Cbonds, one of the leading news agencies for financial data analysis and processing, distinguished Galt & Taggart as Best Investment Bank in Georgia 2018 for the third consecutive year. The strength of our franchise and brand name translates into pricing power by driving down the cost of deposits. The ability to replace more costly borrowings with cheaper funding also leads to improved funding costs: • Lower deposit rates than offered on the market • Cost of client deposits and notes 3.5% in 2018 down from 7.5% in 2010 • Cost of funds 5.0% in 2018 down from 8.2% in 2010 Jan 2007 Feb 2005 mid-1990s FMO Nov 2006 Issues bonds Oct 2004 EBRD, IFC, DEG US$ 12.5 million IPO c.US$ 160 million GEL 2 million 11% Firebird and East 1998 and other IFIs to finance SME issue price GBP 9.2 callable two-year Capital become EBRD becomes provide credit lines loan portfolio GDR listing on LSE local bonds shareholders a shareholder to fund growth Jan 2007 Issues Eurobonds Feb 2008 US$ 200 million Equity issuance US$ 100 million Dec 2010 Feb 2012 9% five-year raised through an offering of new ADB US$ 50 million five-year Premium listing on Eurobond ordinary shares in the form of GDRs maturity loan for SMEs London Stock Exchange Dec 2008 Jul 2012 OPIC US$ 29 million ten-year Issues Eurobonds US$ 250 million senior mortgage facility 7.75% five-year Eurobond Apr 2015 European Investment Bank EUR 40 million Nov 2013 Sep 2015 financing for SME and micro businesses Issues Eurobonds US$ 150 million 7.75% Eurobond Citibank with seven-year maturity consolidated with US$ 250 million 2012 bond US$ 40 million financing May 2015 Dec 2014 June 2014 Dec 2013 for SME IFC US$ 90 million US$ 114 million capital raise share EFSE EUR 18.5 million for IFC US$ 65 million subordinated debt price GBP 20.25, raised capital to MSE and micro businesses subordinated debt purchase Privatbank and support May 2016 further acquisitions EBRD GEL 242 million for MSME financing, with five-year maturity Aug 2016 May 2017 July 2016 BSTDB GEL 60 million Issued local currency Eurobonds Mar 2018 Issued Eurobonds US$ 350 million for MSME financing, with GEL 500 million 11% three-year BSTDB GEL 75 million 6% seven-year Eurobond five-year maturity GEL-denominated bond local currency funding Mar 2019 Successfully priced the first Additional Tier 1 Capital Notes Dec 2018 Dec 2018 July 2018 July 2018 $100 million 11.125% GGF US$ 25 million for EFSE US$ 10 million DEG US$ 43 million FMO GEL 160 million Perpetual Notes energy-efficient projects for MSEs for corporate lending local currency funding 42 Annual Report 2018Bank of Georgia Group PLC