TBC Bank Further Strengthens Leadership Position in Microfinance Segment, Acquir...
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Georgia, January, 28 2015 - TBC has agreed to pay a multiple on the net portfolio which is equivalent to about GEL 40 million as of the same date. The exact size of the portfolio to be acquired will be determined in mid-February 2015 depending on the size and quality of the portfolio at the date of the transaction.
TBC Bank is pleased to announce that it will acquire the entire Micro loans portfolio from ProCredit Bank Georgia, the fifth largest bank by total assets in the Georgian banking sector.
As of 27th of January 2015, ProCredit Bank's Micro gross loans portfolio amounted to GEL 39.3 million (net loans of GEL 37.3 million). TBC has agreed to pay a multiple on the net portfolio which is equivalent to about GEL 40 million as of the same date. The exact size of the portfolio to be acquired will be determined in mid-February 2015 depending on the size and quality of the portfolio at the date of the transaction.
As a part of its strategic reorientation, ProCredit Bank has decided to exit the Micro-financing segment and concentrate purely on small and medium-sized enterprises. The Bank's micro loans are defined as loans under EUR 10,000, which currently represents around 5% of ProCredit Bank's total loan portfolio.
"We are pleased to increase further our Micro loan portfolio and reinforce our leadership position in the Micro segment, which is one of the Bank's main priorities. Given that TBC Bank has recently completed the integration of its fully-owned micro-focused subsidiary Bank Constanta, the acquisition of the Micro Loans portfolio is another major step forward for the enhancement of our Micro Banking business. The acquisition of Procredit Bank's portfolio translates into thousands of new clients, a significantly increased market share and more opportunities for reaching out to rural areas. I would also like to take this opportunity to thank ProCredit Bank's team for their effective and successful cooperation with us during the whole process, "commented Mr Nikoloz Kurdiani, TBC Bank's Deputy CEO and Head of Micro Banking.
Commenting on the announcement, Mr Asmus Rotne, General Manager of ProCredit Bank Georgia, said: "Due to the Bank's new strategy we entered the next stage of our development and all our resources will now be directed towards small and medium sized (SME) businesses offering our clients more sophisticated and enhanced banking services. We believe that the SME segment plays a major role in improving the country's business environment, supporting employment opportunities and contributing greatly to Georgia's development. "