TBC Bank Group PLC Joint Venture with IFC and EBRD (5753N)
30 Septiembre 2021 - 6:05AM
UK Regulatory
TIDMTBCG
RNS Number : 5753N
TBC Bank Group PLC
30 September 2021
Joint Venture with IFC and EBRD in relation to TBC's Uzbek
subsidiary
TBC Bank Group PLC ("TBC PLC") is pleased to announce that it
has entered into a joint venture arrangement with the International
Finance Corporation ("IFC") and the European Bank for
Reconstruction and Development ("EBRD"), whereby IFC and EBRD
intend to invest equity into TBC PLC's wholly owned Uzbek
subsidiary, TBC Bank ("TBC UZ") to support its continued
growth.
Under the terms of a subscription agreement, by the end of 2021,
IFC and EBRD will, subject to certain conditions, each invest USD
9.4 million into TBC UZ in exchange for up to a 20% equity interest
each. TBC PLC will retain 60% ownership of TBC UZ. The terms of the
joint venture will be regulated by a shareholders' agreement. In
addition, IFC and EBRD have agreed subject to certain conditions,
to make additional capital injections of, in aggregate, up to USD
34.3 million during the period up to 2024. The shareholders'
agreement also contains customary board and shareholder reserved
matters.
In connection with the joint venture, IFC and EBRD have also
entered into an option agreement with TBC PLC. This provides that
they may exercise a put of their shares in TBC UZ to TBC PLC
following the sixth anniversary of the arrangement. The put option
would be settled by the issue of new shares of TBC PLC or, to the
extent that was not practicable, in cash. In addition, TBC PLC has
a call option from the tenth anniversary of the arrangement
pursuant to which it would be able to acquire any shares held by
IFC and EBRD at that time for cash.
TBC UZ is the first digital bank in Uzbekistan, which was
launched in October 2020 and has already gained over 850,000
downloads, while the number of its registered users reached more
than 630,000. TBC UZ operates by leveraging TBC's innovative
fintech platform Space, which offers retail banking solutions
through the mobile app. Following its initial launch in Georgia in
2018, Space platform currently successfully operates in two
countries, Georgia and Uzbekistan.
Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank,
commented:
"This joint venture arrangement marks another important
milestone for our Uzbek expansion. It will allow us to accelerate
our growth in the country and offer a wide range of innovative and
affordable products to the Uzbek population. We have a long history
of successful cooperation with IFC and EBRD, who have firmly stood
by our side for two decades. I am extremely grateful to EBRD and
IFC for embarking on this exciting next stage of our journey with
us."
Wiebke Schloemer, IFC Director for Europe and Central Asia,
said:
"We are further deepening our partnership with TBC Bank Group.
IFC is supporting TBC's efforts in expanding banking services,
based on innovative and technological solutions, across Uzbekistan.
This investment is also well-aligned with our strategy to help
Uzbekistan promote greater market competitiveness through
increasing the share of private sector participation in the banking
industry."
Alkis Drakinos, EBRD Director, Head of Uzbekistan, said:
"This is the first equity investment in the Uzbek banking sector
since the Bank's re-engagement with the country in 2017. TBC has
been our longstanding and trusted partner for a few decades now. We
are happy to support its expansion in Uzbekistan, thus increasing
the percentage of private capital in the local banking sector. We
welcome competition and expect it to benefit everyone."
For further enquiries, please contact:
Director of International Media and Investor Relations
Zoltan Szalai
Or
Head of Investor Relations
Anna Romelashvili
ir@tbcbank.com.ge
Further information on the joint venture arrangement.
The joint venture constitutes a Class 2 transaction under the UK
Listing Rules.
For the purposes of LR 10.4.1R (Notification of class 2
transactions), as at 30 June 2021 the value of the gross assets of
TBC UZ was USD 22.5 million and the losses for the year ended 31
December 2020 were USD 2.3 million.
In the event that TBC PLC used cash to settle any option it
would determine the appropriate source of funds at the time.
About TBC Bank Group PLC ("TBC PLC")
TBC Bank Group PLC ("TBC PLC") is a public limited company
registered in England and Wales. TBC PLC is the parent company of
JSC TBC Bank ("TBC Bank") and a group of companies that principally
operate in Georgia in the financial sector and other closely
related fields. TBC PLC also recently expanded its operations in
Uzbekistan. TBC PLC is listed on the London Stock Exchange under
the symbol TBCG and is a constituent of the FTSE Small Cap Index.
It is also a member of the FTSE4Good Index Series and the MSCI
United Kingdom Small Cap Index.
TBC Bank, together with its subsidiaries, is a leading universal
banking group in Georgia, with a total market share of 38.1% of
customer loans and 37.8% of customer deposits as of 30 June 2021,
according to data published by the National Bank of Georgia.
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