Citigroup (Citi), a US-based financial services corporation with operations in 140 countries, and the Overseas Private Investment Corporation (OPIC), a development finance institution of the US government, have announced a term-loan of USD 10 million to Bank of Georgia, a commercial bank in Georgia that is a subsidiary of UK-based Bank of Georgia Holdings, to support the financial inclusion of microentrepreneurs and small businesses in Georgia [1]. This transaction marks the first such investment in Georgia from Citi and OPIC as part of their partnership that was initiated in September 2013 and aims to increase financial inclusion of micro- and small enterprises within the “mainstream” financial system [2].
As of 2012, Bank of Georgia reported total assets of GEL 5.7 billion (USD 3.2 billion), approximately 1 million client accounts and 164 branches in Georgia.
As of June 2013, Citigroup reported total assets of USD 1.9 trillion and total deposits of USD 938 billion.
As of 2012, OPIC listed a net income of USD 272 million and total portfolio of USD 16.4 billion. OPIC has active projects in 150 countries as of 2013.
By Nisha Koul, Research Associate
About Bank of Georgia: The Bank of Georgia is a commercial bank that offers microfinance services, corporate banking, retail banking, wealth management, brokerage and insurance services to clients in Georgia, Ukraine and Belarus. The bank’s holding company, Bank of Georgia Holdings, is incorporated in the UK. As of 2012, Bank of Georgia reported total assets of GEL 5.7 billion (USD 3.2 billion), approximately 1 million client accounts and 164 branches in Georgia.
About Citigroup (Citi): Citigroup is a financial services corporation with its headquarters in New York. Citigroup offers services in approximately 140 countries, including consumer and commercial banking, brokerage, asset management and institutional securities and transactions services. Citigroup’s philanthropic activities are carried out by the Citi Foundation. As of June 2013, Citigroup reported total assets USD 1.9 trillion and total deposits of USD 938 billion.
About Overseas Private Investment Corporation (OPIC): The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of 2012, OPIC listed a net income of USD 272 million and total portfolio of USD 16.4 billion. OPIC has active projects in 150 countries as of 2013.
Sources and Additional Resources:
[1] Citigroup News, “Citi, OPIC and Bank of Georgia Support the Growth of the Microfinance Sector in Georgia with US $10 Million Term Funding,” http://www.citigroup.com/citi/news/2013/131114c.htm
[2] OPIC News, “OPIC and Citi to Leverage up to $200 Million in Financing to Connect Micro and Small Enterprises with Corporate and Financial Institutions,” http://www.opic.gov/press-releases/2013/opic-and-citi-leverage-200-million-financing-connect-micro-and-small-enterprises-corporate-and-financial-ins
MicroCapital Story, October 7, 2013, “OPIC to Support Citi in Loaning up to $200m to Support Small Businesses in Africa, Asia, Eastern Europe, Latin America, https://www.microcapital.org/microcapital-brief-opic-citi-to-loan-up-to-200m-to-support-small-businesses-in-africa-asia-eastern-europe-latin-america/
MicroCapital Story, April 1, 2013, “Overseas Private Investment Corporation (OPIC) Lends $5m to Thaneakea Phum Cambodia (TPC) to Expand Housing, Microfinance Loans, https://www.microcapital.org/microcapital-brief-overseas-private-investment-corporation-opic-lends-5m-to-thaneakea-phum-cambodia-tpc-to-expand-housing-microfinance-loans/
MicroCapital Story, November 29, 2010, “European Fund for Southeast Europe (EFSE) Loans $50m to Bank of Georgia for Microfinance Operations, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-50m-to-bank-of-georgia-for-microfinance-operations/
MicroCapital Universe Profile, Bank of Georgia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Georgia
MicroCapital Universe Profile, Citigroup (Citi), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citigroup
MicroCapital Universe Profile, OPIC, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
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