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Georgian bank signs new loan agreements with EBRD

Finance Materials 28 December 2019 11:24
Georgian bank signs new loan agreements with EBRD

BAKU, Azerbaijan, December 28

By Tamilla Mammadova – Trend:

Georgian TBC Bank has signed three loan agreements totaling $23 million equivalent in Georgian lari with European Bank for Reconstruction and Development (EBRD), Trend reports referring to Georgian media outlets.

As reported, the funding will be available for investments in green technology, especially in climate adaptation and mitigation technologies.

The financial package also includes a comprehensive technical advisory package, co-financed by the Green Climate Fund (GCF) and supported by the Austrian Federal Ministry of Finance, which will help to originate and verify green investment opportunities.

In addition, possible future investments may include technologies such as thermal insulation, solar panels, geothermal heat pumps and water efficient irrigation systems, the report said.

“We have worked closely with EBRD for two decades. Over the last twenty years of very successful cooperation, EBRD has provided support to TBC Bank through numerous debt facilities, technical assistance programs and equity investments," said CEO of TBC Bank Vakhtang Butskhrikidze.

According to him, local currency funding is especially important for the Georgian financial sector as it allows for the reduction of dependence upon borrowing in foreign currencies and protects business owners and households from direct exposure to exchange rate risks.

"With these loans, TBC will further contribute to the positive development of various sectors of the economy, boosting job-creation and bringing long-lasting benefits to Georgia,” he said.

EBRD Regional Director for Caucasus Catarina Bjorlin Hansen said that improving access to green finance is one of EBRD's key priorities in Georgia.

"TBC Bank has a strong client base that can better reach out to private sector players both in the capital and in the regions. Energy is a significant cost component for companies and households and these investments can help firms and residents to significantly reduce their energy consumption," she said.

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