Business
Joint Venture with IFC and EBRD
Joint Venture with IFC and EBRD.
About this update from Tbc Bank Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5753N\n TBC Bank Group PLC\n 30 September 2021\n \n \n \n \n Joint Venture with IFC and EBRD in relation to TBC's Uzbek subsidiary\n \n \n \n \n \n TBC Bank Group PLC (\"TBC PLC\") is pleased to announce that it has entered into a joint venture arrangement with the International Finance Corporation (\"IFC\") and the European Bank for Reconstruction and Development (\"EBRD\"), whereby IFC and EBRD intend to invest equity into TBC PLC's wholly owned Uzbek subsidiary, TBC Bank (\"TBC UZ\") to support its continued growth.\n \n \n Under the terms of a subscription agreement, by the end of 2021, IFC and EBRD will, subject to certain conditions, each invest USD 9.4 million into TBC UZ in exchange for up to a 20% equity interest each. TBC PLC will retain 60% ownership of TBC UZ. The terms of the joint venture will be regulated by a shareholders' agreement. In addition, IFC and EBRD have agreed subject to certain conditions, to make additional capital injections of, in aggregate, up to USD 34.3 million during the period up to 2024. The shareholders' agreement also contains customary board and shareholder reserved matters.\n \n \n In connection with the joint venture, IFC and EBRD have also entered into an option agreement with TBC PLC. This provides that they may exercise a put of their shares in TBC UZ to TBC PLC following the sixth anniversary of the arrangement. The put option would be settled by the issue of new shares of TBC PLC or, to the extent that was not practicable, in cash. In addition, TBC PLC has a call option from the tenth anniversary of the arrangement pursuant to which it would be able to acquire any shares held by IFC and EBRD at that time for cash. \n \n \n TBC UZ is the first digital bank in Uzbekistan, which was launched in October 2020 and has already gained over 850,000 downloads, while the number of its registered users reached more than 630,000. TBC UZ operates by leveraging TBC's innovative fintech platform Space, which offers retail banking solutions through the mobile app. Following its initial launch in Georgia in 2018, Space platform currently successfully operates in two countries, Georgia and Uzbekistan. \n \n \n Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank, commented: \n \n \"This joint venture arrangement marks another important milestone f...