Lion Finance Group PLC (LON:BGEO) has announced that its subsidiary, JSC Bank of Georgia has signed two loan agreements with the International Finance Corporation (IFC), a member of the World Bank Group, with a total limit of USD 118 million. The proceeds will be deployed to support the financing, development, and job creation potential of Micro, Small and Medium Enterprises (MSMEs) in Georgia, including smaller businesses in rural areas.
The first loan agreement provides for a USD 58 million multi-currency line, available for disbursement in US Dollars or Georgian Lari, and the second provides for a USD 60 million line, available for disbursement in US Dollars. Each loan carries a five-year tenor from the date of its respective disbursement and bears interest at a floating rate. Under the terms of the Loan Agreements, Bank of Georgia is required to direct at least 30% of the proceeds towards rural MSMEs specifically, reflecting the Bank’s ongoing commitment to inclusive economic development and expanding access to finance across all regions of Georgia.
Giorgi Shagidze, Group and Bank of Georgia CFO, commented: “We greatly appreciate IFC’s continuous support for Bank of Georgia and Georgian businesses. These loan agreements will enable us to further expand access to finance for MSMEs across the country, with dedicated funding for rural businesses underscoring our shared commitment to building a sustainable and inclusive economy. I would also like to thank the teams involved for their collaboration and continued support throughout the process.”
Shabana Khawar, IFC’s Manager in Georgia, said: “Georgia’s small and medium enterprises play a central role in economic development and employment, with significant potential to deepen their impact, particularly in rural communities. IFC expects its partnership with Bank of Georgia will help MSMEs grow, create, and sustain thousands of jobs, and expand economic opportunities across the country. This investment reflects our broader commitment to supporting private sector growth in Georgia, and we expect it to translate into lasting economic growth nationwide.”
The transaction builds on a long history of cooperation between Bank of Georgia and IFC, including IFC’s anchor investment in a landmark Eurobond placement last year.
