30 June 2011
Bank of Georgia sells 80.0% equity interest in BG Bank, its subsidiary in Ukraine; hosts Investor Days in London and in New York; signs a merchant and ATM acquiring agreement with Diners Club International® Ltd., under the terms of the agreement, Bank of Georgia is an exclusive partner for Diners Club International acquiring business in Georgia, and an ATM processer for Diners Club International and Discover card transactions. Bank of Georgia receives an American Express Global Network Services (GNS) Marketing Award in the category of Outstanding Loyalty and Engagement Program for its Membership Rewards® Campaign and the Global Finance award as the Best Bank in Georgia in 2011.
Launches OneCard Visa Infinite, specially designed card for the Wealth Management clients; sets up a direct account with Euroclear Bank, the international central securities depository of the Euroclear group and the leading clearance and settlement system for internationally traded securities; starts first deposit hedging project in Georgia with IFC; starts the exclusive issuance and promotion of the new American Express Blue Credit Card in the Georgian market. IFC, a member of the World Bank Group completes the purchase of 19.99% equity interest in Belarusky Narodny Bank the Bank’s subsidiary in the Republic of Belarus bringing Bank of Georgia’s equity interest in BNB to circa 80%; sets up a UK subsidiary company, Bank of Georgia Representative Office UK Limited in London.; signs three loan agreements in the aggregate amount of US$ 150 million with EBRD, EFSE and ADB; Fitch Ratings upgrades bank of Georgia’s Long-term Issuer Default Ratings to ‘B+’ from ‘B’ and its senior unsecured debt to ‘B+’ from ‘B’. At the same time the agency has affirmed the Bank’s ratings at Short-term ‘B’, Individual ‘D’, Support ‘4’ and Support floor ‘B’. In 2010 the Bank Receives the Global Finance award as the Best Sub-Custodian Bank and Best Bank in Georgia in 2010 and Euromoney Award for Excellence as the Best Bank in Georgia 2010.
Bank of Georgia draws down US$ 200 million of the IFC and EBRD financing package; repays US$65 million loan facility arranged by Merrill Lynch and US$43.5 million, the second tranche of the syndicated loan received by the Bank in August 2007; completes the settlement of US$140 million Loan Passthrough Notes issued by Rubrika Finance Company Netherlands B.V., As a result, the bank has no significant international wholesale funding repayment obligations until 2012; invests in technological advancements aimed at increasing operating efficiency: commences the implementation of TEMENOS 24, new core banking software and CRIF Decision Solutions, the system provider for its loan origination platform; starts to deploy Softscape, a fully automated talent management system, also acquired in 2009; sells its equity interest in GTAM reducing its exposure to the non-core asset management segment; Fox-Pitt Kelton Limited (FPK) and ING Bank N.V. London branch appointed to act as the bank’s corporate brokers; launches the American Express Card and the American Express Gold Card issued in Georgia; completes the buyout of minority stake in BNB and increases capital by c. EUR10.4 million, as a result the bank controls 99.98% of BNB; receives the Global Finance Award as the Best Bank in Georgia 2009; receives Euromoney Award from Excellence as the Best Bank in Georgia 2009; received the Bank of the Year 2009 Award from The Banker.
Bank of Georgia acquires 70% equity interest in Belarusky Narodny Bank (BNB) in Belarus; launches Integrated Internet and Mobile Banking Platform; becomes Georgia’s first issuing bank for IFC’s Global Trade Finance Program; becomes exclusive partner of American Express for credit card acquiring and issuing in Georgia; raises US$100 million through the sale of four million shares in the form of GDRs; Raises approximately US$440 million in debt funding in 2008, including approximately US$26 million in Lari-denominated short-term promissory notes, a US$30 million subordinated loan from Dutch and German development banks FMO and DEG, US$140 million two-year Loan Passthrough Notes (Bloomberg: BKGORG) arranged by JPMorgan, US$39 million financing package from OPIC, (comprised of US$29 million 10-year senior mortgage facility and US$10 million 10-year subordinated loan facility) and US$ 200 million financing package from IFC and EBRD (comprised of senior loan, subordinated loan and convertible subordinated loan); receives the Global Finance Award as the Best Bank in Georgia 2008; receives Euromoney Award from Excellence as the Best Bank in Georgia 2008; receives the Bank of the Year 2008 Award from The Banker.
Fitch Ratings upgrades Bank of Georgia’s Issuer Default Rating to ‘B’ from ‘B-’, outlook Stable; Bank of Georgia raises an aggregate of US$386 mln in debt funding including US$200 million debut Regulation S five-year, 9 % coupon rate senior unsecured Eurobond transaction, U$S135 mln syndicated loan arranged by Citi, US$35 mln subordinated loan from Merrill Lynch and US$15 million subordinated facility from a fund affiliated with HBK Capital Management; acquires 98.77% of Ukrainian Bank for Development and Partnership (currently rebranded to BG Bank), mid-sized bank in Ukraine; receives the Euromoney Award for Excellence as the Best Bank in Georgia 2007; receives The Banker Award as the Best Bank in Georgia; receives the Global Finance Award as the Best Trade Finance Bank in Georgia 2008.
Bank of Georgia acquires Intellect Bank’s assets & liabilities; co-branded retail initiatives launched; retail banking brand updated; BCI launches Chemebi, a new consumer insurance brand; Bank of Georgia receives ratings from Fitch Ratings and Moody’s; Bank of Georgia receives the Euromoney Award for Excellence as the Best Bank in Georgia 2006; Bank of Georgia receives rating from Standard & Poor’s; Citigroup; World Business Capital, Thames River Capital, Merrill Lynch and HBK Investments L.P. become Bank of Georgia’s key lenders; new institutional shareholders invest and several key shareholders increase their respective stakes; Fitch Ratings upgrades Bank of Georgia’s outlook from Stable to Positive; Bank of Georgia lists its shares in the form of GDRs on the London Stock Exchange (LSE: BGEO); Bank of Georgia’s wholly-owned subsidiary BCI acquires the insurance company Aldagi; receives the Bank Of The Year Award by the Banker.
Series of packaged retail products rolled out; infrastructure upgrade initiated; BCI launches Bancassurance; Debut corporate bonds are placed; private banking launched; Georgian Card migrates to new platform; Bank of Georgia receives the Euromoney Award for Excellence as The Best Bank in Georgia 2005; Bank of Georgia and BCI acquire Europace; DEG divests; Call Warrants against Bank of Georgia shares start trading on Vienna Stock Exchange Dritter Markt; Bank of Georgia consolidates control in Galt & Taggart Securities.
Aggressive turnaround begins; new institutional shareholders invest; several strategic acquisitions made, including TbilUniversalBank, the ninth largest bank at the time of acquisition, BCI, a leading insurance company and Georgian Card, card processing platform.
New management team takes over; first institutional shareholders invest
Credit lines from EBRD, IFC, DEG
DEG becomes a shareholder; reporting in the IAS begins; Bank of Georgia listed on GSE
EBRD becomes a shareholder; “Twining Project” with ABN AMRO initiated
Binsotsbank is privatized, renamed Bank of Georgia