EFSE expands its partnership with Bank of Georgia through the EUR 20 million subordinated loan investment

Luxembourg and Tbilisi, 26 February 2024 – The European Fund for Southeast Europe (EFSE) is providing EUR 20 million in a 10-year subordinated loan facility to Bank of Georgia, a long-standing strategic partner of EFSE, and the top-of-mind bank in the local market.

The investment aims at strengthening the capital position of Bank of Georgia, enabling it to increase lending to micro, small and medium-sized enterprises (MSMEs), particularly those engaged in sustainable activities or that are majority owned or managed by women to support business growth in Georgia, promote gender equality and drive sustainable development forward. 

Oxana Binzaru, EFSE Regional Director said, “MSMEs play a significant role in the Georgian economy, and we are proud to contribute with this investment to support the country’s sustainable and inclusive economic growth, as well as its integration in regional and global markets.”

Archil Gachechiladze, Bank of Georgia CEO, commented: “I would like to thank our long-term partner, EFSE, for their cooperation. We appreciate their ongoing support for Bank of Georgia and local businesses in Georgia. This facility enables us to continue empowering our customers, while maintaining a strong capital position.”

About EFSE
The European Fund for Southeast Europe (EFSE), advised by impact asset manager Finance in Motion, is an impact fund that takes a comprehensive approach to fostering economic development and prosperity in Southeast Europe and the EU Eastern Neighbourhood Region. By investing in local financial infrastructure that provides dedicated financing to micro, small and medium enterprises, the Fund supports the backbone of these regions' economy. As one of the largest MSME funds worldwide, it has a long and successful track record in building strategic partnerships with local financial players, providing tailored debt financing solutions, including local currency loans and targeted agri-financing. The Fund's investment activities are complemented by the nonfinancial support of the EFSE Development Facility, which builds capacities, facilitates knowledge exchange, and nourishes an environment for entrepreneurs to grow.   

EFSE was initiated in 2005 by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.  

About Finance in Motion
Finance in Motion, Germany serves as EFSE’s advisor and is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities. EFSE’s impact is managed in line with the industry standard Operating Principles for Impact Management, also demonstrated by the strong results of the latest independent verification of the advisor’s impact management practices in 2023.   

For more information on the European Fund for Southeast Europe, please visit: www.efse.lu.   
For more information on Finance in Motion, please visit: www.finance-in-motion.com    

About Bank of Georgia
Bank of Georgia Group PLC (the “Company” – LSE: BGEO LN) is a FTSE-250 company. Its core entity is JSC Bank of Georgia (“Bank of Georgia”, “BOG”, or the “Bank”), a digital banking leader in Georgia that provides a suite of banking and financial services to retail clients and businesses. By building on its competitive strengths, the Group is committed to delivering strong profitability sustainably and maximizing shareholder value.

Media contact EFSE  
Louise Daruwalla-Nielsen  
Marketing & Communications  
Email: press@efse.lu  
Phone: +352 691 336 439  

Media contact Araratbank 
Nino Phophkhadze
Head of Media relations team
Email: nphophkhadze@bog.ge
Phone: +995 599 49 55 41

Get in touch

Interested in learning more about how the fund works, or seeking partnership opportunities? Contact an EFSE representative today.


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