BSTDB Expands Local Currency Funding for Bank of Georgia to Support SME Sector

BSTDB Expands Local Currency Funding for Bank of Georgia to Support SME Sector

The Black Sea Trade and Development Bank (BSTDB) has extended  a new medium-term GEL 75 million (USD 30 million)  local currency   loan to the Bank of Georgia aimed at supporting the small and medium-sized companies (SMEs) in Georgia.

It is the second facility under the BSTDB local currency funding framework provided to Bank of Georgia after the successful utilization of the first GEL 60 million (USD 25 million) facility signed in 2016 and used to finance about 700 SMEs in Georgia.

Igor Leshukov, BSTDB Vice President Banking, said: “We are delighted to expand our successful partnership with Bank of Georgia, now our largest client in the country, to jointly offer much-needed financing solutions to the Georgian SME sector and to contribute to the de-dollarization programme in the banking sector initiated by the Georgian Government. We are grateful to the National Bank and the Ministry of Finance of Georgia for their support for BSTDB’s local currency operations. For the first time, to fund the operation BSTDB will issue bonds via a public placement, which will be listed at the Georgian Stock Exchange and will contribute to the capital market development in Georgia.”

Kaha Kiknavelidze, Bank CEO commented: “I am very pleased that Bank of Georgia and our partner BSTDB have once again successfully co-operated on a local currency transaction. As the demand for GEL-denominated funding grows year over year, we continue to leverage our long-term partnerships with development financial institutions to secure our customers the funding they need. I would like to thank BSTDB for supporting us in our aim to contribute to the further de-dollarization of Georgia’s economy.”

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