Georgia’s TBC Bank and the Asian Development Bank (ADB) have signed a five-year, US$50mn senior loan agreement to finance SMEs.

The facility will help TBC extend credit to under-banked small and medium businesses outside the capital, Tbilisi.

“This facility will help the bank to further strengthen its position in the segment by expanding its portfolio in rural areas of Georgia, where credit availability is relatively limited at present,” says Vakhtang Butskhrikidze, TBC Bank’s CEO.

The ADB began its operations in Georgia in 2007 and has since provided a total of US$1.1bn in financing to the country, US$163mn of which for the private sector. TBC Bank has been a participant in the ADB trade finance programme since April 2011.