Groupe Agence Française de Développement and Credo Bank signed an equity investment agreement based on which Proparco has become a new shareholder of the bank. At the signing ceremony the president of the National Bank of Georgia, Koba Gvenetadze spoke about strengthening cooperation between Proparco and Credo Bank and mentioned that the capital investment agreement indicates that the confidence of international investors in the Georgian banking system is very high.

“Today when the pandemic has not passed yet, the share capital of the French Institute of Development Finance is very important. This means that the confidence of International investors in the Georgian banking system is very high. It’s not just the financial sector, it means that the monetary policy pursued by the National Bank of Georgia is also highly valued, as financial stability is impossible without the right monetary policy. Credo Bank is growing and developing, the activity of the bank is very important. It’s mainly concentrated in the regions of Georgia, providing the financial resources for example for financing agriculture, which is important for both employment and development of the region”, - said Koba Gvenetadze.

As he explained, the fact that Proparco has become the new shareholder of Credo Bank also indicates healthy competition in the sector.

“As for this deal, it also shows that there is a healthy competition in the sector, in case any investor wants to leave the country or enter the Georgian banking system, this is also free, if the existing conditions are met”, - said Koba Gvenetadze.

Zaza Pirtskhelava, General Director of Credo Bank, spoke about the importance of the investment agreement and mentioned that FINCA Bank has a solid deposit base and as a result of the cooperation with Credo Bank, the customers of FINCA Bank will be able to take full advantage of banking products. “Proparco has supported the acquisition of FINCA Bank by investing its capital, as well as the future growth of Credo Bank. The acquisition of FINCA Bank is important, because professional staff will join the team of Credo bank, which is also an opportunity for FINCA Bank employees. It is important that FINCA Bank has a solid base of deposits. As for the customers of FINCA Bank, the bank had limited products, but Credo Bank has a wider range of banking products. FINCA Bank customers will be able to use full banking products together with Credo Bank”, - said Zaza Pirtskhelava.

Stefan Frosard, Proparco’s regional director for Eastern Europe, Turkey, the Caucasus, the Balkans and Central Asia, said it was important for them to collaborate with a responsible institution, while Credo Bank was a responsible mission.

“We started the partnership with Credo Bank in 2015, 6 years ago, when Credo bank still was a microfinance organization and since then we have been providing Credo Bank with four different credit lines. Today’s deal is important for several reasons: it is important for us to cooperate with a responsible institution. Credo is a responsible social mission, we have known them for 5 years, we trust the management, the leadership and we are sure that they are the right partners of Proparco in Georgia. This is an important deal as it is the first equity transaction in the country. This, of course is a very good signal to the markets that Proparco is investing capital in the Georgian company and paving the way for other similar deals in the near future. This deal is also important because it coincides with the difficult period of COVID-19, when many investors are evading European markets and it is very important for us that the deal took place in this difficult context and even during the COVID-19 crisis”, - said the regional director.

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