TBC - AT1 Capital Notes

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

An investment of USD 60 million in USD 300 million Basel III compliant Perpetual Subordinated Callable Additional Tier 1 Capital Note issuance by JSC TBC Bank ('TBC'). Notes will be listed on Euronext Dublin (Global Exchange Market) with expected issue rating of B2 by Moody's.

Project ID 55247

Status Disbursing

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Ketevan Bitskinashvili
TBC-IFM@tbcbank.com.ge
+(995 32) 227 27 27
https://tbcbankgroup.com/
7 Marjanishvili St. Tbilisi, Georgia 0102

Project ID 55247

Status Disbursing

Location

Georgia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

10 Apr 2024

Disclosure date

25 Apr 2024

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

TBC - AT1 Capital Notes (Georgian) (PDF, 0.10MB)

Project description

Project objectives

The proposed investment in AT1 Capital Notes supports the resilience of a systemic financial institution in Georgia by (i) strengthening its capital position to maintain prudent capital buffers, (ii) insulating the bank's capital base against the currency depreciation, and (iii) enabling uninterrupted lending to the real economy.

Transition impact

ETI Score:69

ected transition impact stems from Resilient and Competitive transition qualities. The investment in AT1 Capital Notes will strengthen the systemic bank's Tier 1 capital, optimise capital structure and diversify capital currency composition while providing additional capacity for future growth for continued lending to the real economy.

Client information

TBC BANK JSC

TBC Bank ('TBC') is a leading universal bank in Georgia. It offers a full range of financial products and services to the retail, corporate and MSME clients through the wide distribution network of 135 branches and digital channels. TBC's credit rating is BB/Stable by Fitch, Ba2/Stable by Moody's.

EBRD Finance Summary

USD 60,000,000.00

EBRD finance is 20% of the total issuance at USD 60 million.

Total project cost

USD 300,000,000.00

Total issuance size is USD 300 million.

Additionality

EBRD financing is expected to effectively 'close the funding gap' and support successful book-building process for TBC's benchmark AT1 issuance as the bank returns to the international capital markets since 2021. The project is also Gender additional as TBC will participate in the national roll-out of the WE Finance Code in Georgia.

Environmental & Social Summary

Categorised FI (ESP 2019). TBC bank is a long-standing client of the EBRD and compliance with, and reporting on, the Bank requirements have been good in the context of the existing and previous projects.

Technical Cooperation and Grant Financing

None

Company Contact Information

Ketevan Bitskinashvili
TBC-IFM@tbcbank.com.ge
+(995 32) 227 27 27
https://tbcbankgroup.com/
7 Marjanishvili St. Tbilisi, Georgia 0102

PSD last updated

26 Apr 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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TBC - AT1 Capital Notes

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)