TBC Bank Group PLC (“TBC PLC”) announces that its subsidiary, JSC TBC Bank ("TBC Bank"), has signed a loan agreement in the amount of USD 10 million with ResponsAbility Investments AG. The facility will primarily be used to finance small and medium size enterprises in Georgia.
The transaction is a part of an international USD 175 million blended impact finance securitization to SME finance institutions in emerging markets, managed by the international asset manager ResponsAbility. The transaction allows TBC Bank to service more of its SME customers, while allowing large-scale investors access to a unique pool of assets that offer both attractive returns and an engagement in impact investments.
“We are delighted to participate in another exciting project with our long-standing partner ResponsAbility, alongside other impact-aware financial institutions around the world. The transaction allows high-quality investors access to a range of entrepreneurial projects and is proof of the financial world’s increasing focus on thoughtful investing to ensure benefit for all stakeholders. We are proud to facilitate access to some of the newest and most exciting projects in Georgia and be at the forefront of our country’s sustainable development”, commented Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank.
“This securitization shows that the fast-growing microfinance and SME finance space in emerging markets has now reached a maturity that allows it to access financing from mainstream capital markets”, commented Thomas Müller, Co-Head Financial Institutions Debt at ResponsAbility.
JP Morgan acted as the arranger and placement agent of securitization, and US Government agency Overseas Private Investment Agency (OPIC) provided the base capital to initiate participation from private institutional investors. Other investors include US based impact investor Calvert Impact Capital, and Swedish occupational pension provider, Alecta.
ResponsAbility Investments AG is an asset manager in the field of development investments and offers professionally-managed investment solutions to private, institutional and public investors. Based in Zürich, Switzerland, ResponsAbility Investments AG is one of the world’s leading asset managers in the field of development investments. It was established in 2003 and has investments in 90 countries. ResponsAbility Investments AG has USD 3 bn assets under its management.
Source - TBC Bank PLC
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