TBC Bank Group PLC (“TBC PLC”) announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed its first loan agreement with the China Development Bank (“CDB”) in the amount of USD 50 million.
This is the largest facility CDB has ever provided to any Georgian entity. Funds are for general corporate purposes and will help TBC Bank to expand its financing operations for Georgian clients primarily in the SME and Micro segments including those who directly benefit from the increasing trade with China.
China is the third largest trade partner for Georgia. A Free Trade Agreement signed between China and Georgia in 2017 provides Georgian products with free access to one of the world’s largest consumer markets. Economic relationship between the two countries has increased significantly over the past five years with exports to China increasing 8 times and its share in total exports reaching c. 8% in 2017.
CDB is the largest Chinese bank for foreign investment and financing cooperation. CDB serves the Belt and Road Initiative and deepens cooperation with foreign governments, enterprises and financial institutions in key industries, ranging from infrastructure, equipment manufacturing, finance, agriculture and energy to projects important for people’s livelihood.
“We are very proud to have completed this inaugural transaction with China Development Bank. Our partnership with CDB is a logical response to the recent positive economic developments between our countries. The transaction reflects both institutions’ commitment to launch a successful cooperation and we look forward to many years of productive partnership,” commented Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank.
