TBILISI – TBC Bank Group PLC, a leading financial institution based in Tbilisi, has entered into a strategic partnership with the European Bank for Reconstruction and Development (EBRD). The collaboration is marked by a significant financial agreement where TBC Bank will receive a $30 million subordinated loan. This move is designed to strengthen the bank’s capital structure and support its sustainable growth trajectory.
The ten-year maturity loan signifies a robust vote of confidence in TBC Bank’s operations and its future prospects. CEO Vakhtang Butskhrikidze hailed the deal as an “excellent transaction,” emphasizing its importance in bolstering the bank’s long-term resilience. Over the previous year, TBC Bank has performed favorably in the market, with its stock price ascending by 24% to reach 2,720.00 pence.
In addition to financial support, the agreement with EBRD includes a commitment from TBC Bank to embark on a transformative journey towards climate-conscious banking. The bank aims to develop a Paris alignment transition plan, which will bring its business practices in line with the objectives of the Paris Agreement. This includes enhancing climate governance and refining risk management strategies.
The partnership marks TBC Bank as the first EBRD partner bank in the Caucasus to undertake such an environmental initiative. This step not only underscores TBC’s dedication to sustainable banking but also sets a precedent for other financial institutions in the region.
The EBRD has been a proactive supporter of environmentally responsible finance, having pledged to align all its activities with the Paris Agreement by the end of 2022 and aiming to make over half of its financing green by 2025. With more than €5 billion invested across 288 projects in Georgia, EBRD’s latest partnership with TBC Bank reinforces its commitment to fostering economic growth and environmental sustainability within the country.
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