Tbilisi, Georgia — Bank of Georgia, a leading Georgian Bank, has signed a USD75 million one-year Club Trade Finance Facility (“Club Trade Facility”) arranged by Citi with Asian Development Bank (ADB) and IFC, a member of the World Bank Group. ADB supported the facility through the Trade Finance Program (TFP) in the form of a guarantee and IFC provided funding through its Global Trade Liquidity Program in place with Citi.
This is the fourth Club Trade Facility arranged by Citi for Bank of Georgia, which attracted several international investors during the syndication. Proceeds of this year’s Club Facility will support import and export transactions for top corporate customers of Bank of Georgia, increasing the volume and value of trade transactions in Georgia’s key economic sectors, including agribusiness, transportation and energy.
“We are pleased to be at the forefront of providing much needed trade finance products to our corporate and SME clients. The Facility is intended to finance trade operations in Georgia’s key economic sectors such as agribusiness, transportation and energy. It will not only diversify and strengthen our client base, but also serve our purpose to contribute to sustainable economic growth in Georgia”, said Kaha Kiknavelidze, Bank of Georgia CEO. “I would like to thank Citi and our long-term partners – ADB and IFC – for another fruitful collaboration and successful completion of the transaction.”
“Citi’s global reach and expertise in financing trade flows puts us in the ideal position to help support progress and growth in developing markets” comments Peadar Mac Canna, EMEA Head of Trade Finance at Citi. By facilitating this landmark “Club” Trade Finance Facility for Bank of Georgia, we have been able to form a partnership with a number of industry professionals, to ensure we can provide the ideal solution for Bank of Georgia’s trade financing needs.
“The Asian Development Bank is delighted to be part of this transaction with Bank of Georgia, Citi and IFC through the Trade Finance Program (TFP),” said Nana Khurodze, Relationship Manager at ADB. “Through this facility, Bank of Georgia will be able to grow its trade finance operations to support more importing and exporting companies, including small and medium-sized businesses. This will support growth and job creation in Georgia.” ADB’s TFP in Georgia has supported over $91 million in trade through 45 transactions since 2011. Out of this, 31% have been SME-related deals.
Jan van Bilsen, IFC Regional Manager for the South Caucasus, said: “Bank of Georgia is one of IFC’s key partners in Europe and Central Asia, and it has played a critical role in expanding trade into new markets and helping local SMEs grow and create jobs. IFC’s participation in this recent transaction through its Global Trade Liquidity Program is yet another way to ensure the availability of funds to local enterprises, helping facilitate trade and drive job creation.”