BOG LC Bond DCM (IFC-39651)

Countries
  • Georgia
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 14, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Bank of Georgia JSC
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 3, 2018

Disclosed by Bank Jun 1, 2017


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to IFC website, IFC invested in a tradable Eurobond issued by Joint Stock Company Bank of Georgia (JSC BoG or the Bank), an IFC strategic partner in Georgia (the Project). BoG is a wholly owned subsidiary of Georgia-based JSC BGEO Group, whose parent BGEO Group PLC is incorporated in the United Kingdom and listed on the Premium segment of the London Stock Exchange (LSE). The issuance comprises new notes offered by JSC BoG in the amount of 500 million Georgian Lari (GEL), with a 3-year maturity (the Notes). Proceeds from the issuance of the Notes are being used by BOG to support GEL-denominated lending, primarily to retail banking clients, to finance existing liabilities and for other general working capital and corporate purposes. The Notes are listed on the Irish Stock Exchange under 144A/Reg S and were offered to qualified institutional buyers in the United States and to non-US persons elsewhere.

The development impacts of this projects are:
1. Demonstrate the ability of a Georgian entity to attract long-term funding in local currency from international investors through a market transaction during volatile economic times;
2. Increase financial inclusion in Georgia. By providing long-term financing to BoG IFC supported a systemically important lender in Georgia, heightening BoG’s role in diversifying the country's economic base, creating jobs, and fostering sustained economic growth. Banking sector penetration in Georgia remains low. In order to enlarge financial intermediation, it is essential to increase the flow of credit to individuals and MSMEs and the economy in general; and
3. Help increase the Bank’s capacity to expand lending in local currency, helping borrowers avoid risks related to borrowing in foreign currency

Investment Description
  • International Finance Corporation (IFC)

BoG is a privately owned joint-stock company incorporated in Georgia. The holding company of the Bank is JSC BGEO Group, JSC BGEO is a fully owned subsidiary of the UK incorporated BGEO Group PLC. BGEO Group PLC is listed on the Premium segment of the London Stock Exchange and has a current market capitalization of approximately U$1.9 billion. Its top 10 institutional shareholders which, in aggregate, own about 36% of the Group’s shares include Schroeder Investment Management PLC, Artemis Investment Management, Harding Loevner LP and Westwood International Advisors Inc.

Private Actors

BoG is a privately owned joint-stock company incorporated in Georgia. The holding company of the Bank is JSC BGEO Group, JSC BGEO is a fully owned subsidiary of the UK incorporated BGEO Group PLC. BGEO Group PLC is listed on the Premium segment of the London Stock Exchange and has a current market capitalization of approximately U$1.9 billion. Its top 10 institutional shareholders which, in aggregate, own about 36% of the Group’s shares include Schroeder Investment Management PLC, Artemis Investment Management, Harding Loevner LP and Westwood International Advisors Inc.

Contact Information

Project Contact: Giorgi Alpaidze
Head of Finance, Funding and Investor Relations
JSC Bank of Georgia
Telephone No.: +995 32 2 444 444
Email Address: g.alpaidze@bog.ge
Office Address: 29a Gagarini Str., Tbilisi, Georgia
Website: www.bgeo.com

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/