Bank of Georgia has signed a one-year US$50mn trade finance facility with Citi for small and medium-sized firms across the country.
The loan has been arranged under the Continuing Agreement for Reimbursement of Trade Advances (Carta), signed with Citi in 2011, and marks the third successful transaction between Citi and the bank under the agreement.
“I am very glad to see that Bank of Georgia and our trusted partner Citi continue to actively co-operate on trade finance deals, which enable us to strengthen our position as a go-to bank for tailormade trade finance products in Georgia,” says bank CEO Archil Gachechiladze.
“Facilities of this kind are important for our corporate, as well as SME clients that are actively engaged in export-import transactions and we aim to remain a reliable financial support for them,” he adds.
Trickle of trade finance deals
In 2017, Bank of Georgia signed a US$75mn trade finance deal arranged by Citi together with the Asian Development Bank (ADB) and the International Finance Corporation (IFC).
ADB supported the year-long facility with a guarantee through its trade finance programme, and IFC teamed up with Citi to provide funding through its global trade liquidity programme.
The previous year saw Bank of Georgia close a US$50mn trade finance facility that supported the imports and exports of the banks’ corporate customers in agribusiness, transportation and energy.
This deal was again arranged by Citi with the IFC providing funding and a partial guarantee through its global trade finance programme.
Additionally in 2014, Citi arranged a US$25mn facility for the Bank of Georgia, enabling the growth of its trade finance portfolio.