IFC Capitalization Fund Invests $65 million in Bank of Georgia to Increase Access to Finance

Tbilisi, Georgia, February 6, 2014—The IFC Capitalization Fund, a fund managed by the IFC Asset Management Company, is investing $65 million in Bank of Georgia, the country’s largest bank, to help the bank increase domestic access to finance and foster sustained economic growth.

"We are happy to partner with Bank of Georgia as it continues to grow and improve access to finance by expanding its lending operations,” said Marcos Brujis, Head of the IFC Capitalization Fund.

With its 10-year maturity, the loan will support the bank’s loan portfolio growth and increase financial inclusion in Georgia by enhancing access to long-term finance.

“The subordinated loan facility, which qualifies as Tier II Capital, will improve the overall capitalization of the bank and help drive down our cost of funding,” said Irakli Gilauri, Bank of Georgia CEO. “I would like to thank our long-standing partner and shareholder IFC for continuous collaboration and our funding team for the successful completion of the transaction.”

Bank of Georgia holds more than a third of the Georgian banking market in terms of total assets, loans, deposits, and shareholder equity. IFC is a shareholder of Bank of Georgia Holdings plc, Bank of Georgia’s UK-incorporated holding company, which is listed on the main market of the London Stock Exchange.

"This subordinated loan will enable Bank of Georgia to strengthen its capital base and continue lending to Georgian companies and individuals, supporting economic growth and job creation," said Thomas Lubeck, IFC Regional Manager for the South Caucasus. “This project is another step in a long and productive partnership between Bank of Georgia and IFC."

Georgia became an IFC member in 1995. Since then, IFC has invested more than $695 million in 57 projects across various sectors and supported regional projects developed in the country. IFC has also implemented a number of advisory projects focused on the development of the private sector.



About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.



About IFC Asset Management Company

IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. It manages $6.3 billion of capital across six investment funds.



About the IFC Capitalization Fund

The IFC Capitalization Fund is a global equity and subordinated debt fund supported by commitments from IFC and the Japan Bank for International Cooperation. It aims to strengthen banks considered vital to the financial system of emerging markets.



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About JBIC

Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly owned by the Japanese government, which has the objective of contributing to the sound development of Japan and the international economy and society, by conducting financial operation in the following four fields: Promoting the overseas development and securement of resources which are important for Japan; Maintaining and improving the international competitiveness of Japanese industries; Promoting the overseas business having the purpose of preserving the global environment, such as preventing global warming; Preventing disruptions to international financial order or taking appropriate measures with respect to damages caused by such disruption. For more information, visit www.jbic.go.jp/en.



About Bank of Georgia

Bank of Georgia is the leading bank in Georgia, with more than a third of the market share based on total assets, total loans, total deposits and total shareholders’ equity. The bank offers a broad range retail banking, corporate banking, investment management, brokerage, insurance and healthcare services to its clients. As of 30 September 2013, the Bank served more than one million client accounts through one of the largest distribution networks in Georgia, with 199 branches, including full-service flagship branches, standard branches and express branches, the country’s largest ATM network, comprising 486 ATMs, 893 Express Pay (self-service) terminals and a full-service remote banking platform and a modern call center. For more information, visit www.bog.ge.