05.Jul .2022 16:42

Basisbank Receives Eur 15M Subordinated Loan Facility from EFSE

Basisbank Receives Eur 15M Subordinated Loan Facility from EFSE
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The European Fund for Southeast Europe (EFSE) and JSC BasisBank ( “BB”), are further expanding their partnership. EUR 15 million worth of a Subordinated Loan contributed by EFSE shall serve as a capital cushion to balance the accelerated growth phase of Basisbank. This new cooperation will help Basisbank to achieve its goal – to position the Bank as the 3rd largest player on Georgian financial market.

The Subordinated Loan facility qualifies as a Tier 2 Instrument and will further enhance overall Capital and Liquidity Position of BB, contributing towards flexibility to expand on the market. Basisbank successfully continues to implement its ambitious growth objectives, in line with its strategy.

Mutually successful cooperation between BB and EFSE dates back to the year 2019, when the Fund, with the generous support of the European Union under the EU4Business initiative, embarked on a multifaceted campaign to increase the practice of local currency financing in the European Eastern Neighbourhood Region – an important aspect of responsible finance that protects local small borrowers from the direct risk of exchange rate fluctuations. Another successful investment came during the most challenging year of the recent history - 2020, during the Novel Coronavirus Pandemic, when the partners provided much-needed long-term funding in local currency to MSMEs, aiming to help them preserve their businesses and sustain employment both during and after the COVID-19 crisis.

Through joint collaboration, BB and EFSE continue to contribute to the development of business in the country by expanding availability of long-term financing and devoting larger resources to the economy.

About EFSE

An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions.

EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.

Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu 

For more information on Finance in Motion, please visit:  www.finance-in-motion.com

About BasisBank

Throughout 28 years of our business operation on the marker, we have grown into a solid universal financial institution to include insurance and leasing businesses and established ourselves as one of the significant market players in the country. With total assets well over GEL 2.8 billion by the end of Q1, 2022, our Group closes the TOP 4 Georgian Financial Institutions list on the market, delivering top-notch services to our retail and business customers.