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EBRD To Provide Additional Investment to VTB Georgia

08/12/2009

Central & Eastern Europe, Georgia, Investment, Private Equity News

Pending project approval, VTB Georgia is poised to receive a USD 7.3 million equity investment from the EBRD. The investment is aimed at helping VTB Georgia remain compliant with government regulation while also realizing growth through continued lending within the Georgian economy. VTB Georgia has already received the necessary technical assistance and training needed to help it remain stable and competitive. Funds for that assistance were provided through donations from the EU, France, Japan, the U.K., and USAID.

VTB Group (www.vtb.com)

VTB Group is a Russia based financial group. By offering financial services through its subsidiaries in over 20 countries in Russia, the CIS, West Europe, Asia and Africa the company became the second largest financial group in Russia regarding its assets and customer accounts.
VTB Bank (former Vneshtorgbank), the very heart of the VTB Group, has been established in Moscow in 1990 as a state initiative of the RSFSR .  VTB Group deals with investments via VTB Capital, their investments in innovative and high-technology companies are one of the priority development lines of VTB Group’s investment business. The main profile of VTB Bank is retail and corporate banking.

JSC VTB Bank Georgia (VTBG) was established in 1994 through the merger of three state-owned banks. It became part of the VTB Group in 2005 and is now Georgia’s sixth-ranked banking institution with $228 million is assets.
VTBG’s primary shareholders are majority shareholder OJSC VTB Bank (77.5%) and the EBRD (8.9%). The bank offers a wide range of standard commercial and consumer banking services in cities across Georgia. Despite heavy losses for the 2008 fiscal year VTBG was still given a long-term credit rating of B+ by Fitch in December of 2008.

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