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IFC to Help Develop Georgia’s Mortgage Market


In IFC Tbilisi:
Thea Gigiberia
E-mail: TGigiberia@ifc.org


Tbilisi, Georgia, August 29, 2008—IFC, a member of the World Bank Group, has partnered with Bank Republic, Société Générale Group, to help develop Georgia’s mortgage market and expand access to finance for retail customers.  

IFC is providing a $7 million subordinated loan to support Bank Republic’s capital and a $15 million senior loan for mortgage financing. The 10-year senior debt is the longest tenor offered by IFC to a Georgian bank. This will enable the bank to provide more affordable mortgage loans during times of tight liquidity.

“Bank Republic is our reliable client and valuable partner in the region. With this new investment our cooperation will be brought to the new level. IFC is looking at opportunities to finance projects that will have targeted impact and significant contribution to boosting the economic growth in Georgia. The new transaction with Bank Republic, which has a well diversified portfolio, will allow us to achieve such an impact,” said Snezana Stoiljkovic, IFC Director for Central and Eastern Europe.  

“We are enjoying a long-lasting and fruitful partnership with IFC. The new transactions are reinforcing this cooperation, and Bank Republic and Société Générale appreciate IFC’s strong support in this difficult financial environment,” said Gilbert Hie, Chief Executive Officer of Bank Republic.

IFC invested $20 million in Bank Republic in 2007 to support the expansion of the bank’s small and medium enterprise, mortgage, and educational lending programs. Since 2005, Bank Republic has been a part of a pilot program under the IFC Georgia Corporate Governance Project. This has enabled the bank to improve its corporate governance systems and practices and become the first Georgian bank to attract western investors.  

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

About Bank Republic and the Société Générale Group
Bank Republic, one of Georgia’s oldest privately owned banks, was founded in 1991. It is a leading commercial bank that is expanding rapidly operations in corporate and retail banking and financial services. The bank has more than 800 employees and serves clients through its 37 branches and service centers.  

In 2006, the Société Générale Group and the European Bank for Reconstruction and Development entered into an agreement with the bank to purchase 60 percent and 10 percent of its shares respectively. Société Générale is one of the largest financial services groups in the Eurozone. It has more than 151,000 employees in 82 countries worldwide. It is structured around three core businesses: retail banking and financial services, global investment management and services, and corporate and investment banking. For more information, visit www.republic.ge.