FMO, the Dutch entrepreneurial development bank, has placed GEL 30 million bonds with TBC Capital acting as a sole Lead Manager. MKD Law was engaged as a legal counsel on the transaction.
The placement was fully purchased by Terabank. The Bank will be able to borrow 95% of the nominal amount of the bonds for refinancing rate from National Bank of Georgia against pledging the mentioned bonds. It is worth mentioning, that attracted funding will be directed towards the support of SME and young entrepreneurs.
Through transactions like this, FMO continues its investment activities in Georgia, supporting local financial institutions and the development of the Georgian capital markets. The most recent bond placement by FMO in Georgia was completed in 2021, when it placed GEL 34 million bonds with TBC Capital acting as a sole Lead Manager. The placement was fully purchased by Terabank.
“The continued support of FMO towards Georgian financial institutions plays a crucial role in local capital markets development. The transaction is a good example of cooperation between TBC Capital and the issuer, which is another step forward for a future, successful partnership with both local and international financial institutions. Moreover, the transaction is important for Terabank as it has attracted additional GEL financing from an international financial organization which can be used to increase access to GEL funding for Georgian borrowers”, - said Mary Chachanidze, Managing Director of TBC Capital.
“We are very proud to have extended our Georgian funding program through our fifth transaction since 2018. Offered in local currency, this bond issuance aligns perfectly with our overarching strategy of creating impact in our chosen markets”, – said Matthijs Pinxteren, Director Treasury at FMO.
“We are glad that the successful partnership with our long-term partner – FMO continues. Attracted financial resources will back up our goal of expanding borrowing services and supporting small and medium businesses. TBC Capital plays a crucial part in completing the transactions successfully”, - said Sophie Jugeli, CFO of Terabank.
