Tbilisi, Georgia, March 23, 2010—IFC,
a member of the World Bank Group, is helping TBC Bank, the largest bank
in Georgia by retail deposits, hedge interest rate risks and thus improve
its operations and competitiveness.
IFC and TBC Bank today agreed to undertake
additional interest rate swaps under their International Swaps and Derivatives
Association Master Agreement, the international legal documentation for
the execution of risk-management transactions.
IFC first started providing TBC Bank
with interest rate swaps in 2004. The current transaction will enable the
bank to hedge U.S. dollar interest-rate risk on the its outstanding long-term
borrowings at favorable rates. The transaction is part of IFC’s broader
strategy to improve risk-management capacity within its client banks and
introduce innovative products to its clients in Central and Eastern Europe.
“In 2004 TBC Bank was delighted to
be the first Georgian bank to use swaps as a risk-management tool,” said
Vakhtang Butskhrikidze, TBC Bank’s General Director. “Entering the swaps
will help us better match our asset and liability positions and increase
our ability to manage the bank’s finances for the benefit of our customers,
depositors, and shareholders.”
“IFC’s strategy in the financial sector
is to help banks improve their sustainability and mitigate risks, including
interest rate risks,” said Snezana Stoilikovic, IFC Director for Central
and Eastern Europe. “I am pleased we have another opportunity to extend
our support to TBC Bank, our oldest banking client in Georgia, and contribute
to strengthening Georgia’s financial sector by encouraging prudent risk
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently seeking
a capital increase to strengthen its ability to create opportunity for
the poor in developing countries—including by helping strengthen financial
system by reducing interest-rate risks.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About TBC Bank
JSC TBC Bank was established in 1992.
TBC Bank is the leading universal bank in Georgia with solid franchise
in corporate and retail segments offering broad range of banking products
and quality services to its clients. Its shares are held by six major financial
institutions: IFC, DEG, EBRD, FMO, JP Morgan, Ashmore, and Georgian individuals.
For more information, visit: www.tbc.ge.