Press release -
Swedfund contributes with 15 million dollars in loan financing to the Bank of Georgia
Swedfund joins several other European development finance institutions in a subordinated 15 million dollar-loan to Georgia's second largest bank, Bank of Georgia. Through lending to small and medium-sized companies in a systemically important bank, Swedfund contributes to supporting growth in Georgia.
In total, the European Development Funders supported a total of 107 million dollars in long-term funding to the Bank of Georgia.
- With this investment, we support lending to small and medium-sized companies, which is a basis for growth in the country. The investment also gives us the opportunity to influence work in areas such as sustainability and gender equality, says Maria Håkansson, CEO of Swedfund.
With about 2.5 million customers, Bank of Georgia is today Georgia's second largest bank. The Bank's stated digitalization strategy enable a broader and more comprehensive access to financial services for both private customers and small and medium-sized companies, and there as an increased degree of financial inclusion.
Georgia has annual real GDP growth of almost five percent, while gradually reducing its dependence to Russia. Much of the growth is driven by SMEs and the access for funding for these companies is essential for an continues growth. At the same time, the Georgian capital market is undeveloped and access to capital is limited.
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About Swedfund
Swedfund is Sweden's development finance institution for sustainable investments in developing countries. In order to achieve the goal: a world without poverty, more jobs are required in the private sector and that access to renewable energy is increasing. Investments are therefore made within energy & climate, health and to reach small and medium-sized companies.
As a state-owned company, Swedfund is managed by the Ministry of Enterprise and Innovation. The operations are financed partly through capital injections for which the Ministry of Foreign Affairs is responsible and through reflows from the own portfolio. Swedfund was founded in 1979 and has since the start made more than 240 investments in more than 60 countries.
