Basisbank Is The 3rd With Lending

According to Gabunia, the bank firmly stands in the 3rd position with business lending, financing of small and medium-sized companies, as well as the corporate and retail market.2023 is the anniversary for Basisbank, the bank is celebrating its 30th anniversary. However, 29 was more solemn than the round date, and the turning point was 2022 - the year of enlargement. Chinese Hualing group bank expanded its portfolio with an asset purchased from VTB (the bank, with Russian capital, was bankrupted after the Russian invasion of Ukraine and had to give up the asset).Basisbank ended January-February with a profit of up to 7.2 million GEL and is 6th among profitable banks (12), with a share of 1.9% (03.01.2022 – 2.48%).Basis Bank  ( GEL, %)


Sanctioned VTB Bank Still Gain Profits

Credo Bank moved among the profitable banks with 4.7%-share, which net profit exceeds 18 million GEL (operational: 9,2 million GEL).Sanctioned VTB Bank returned to the list of profitable banks, but the Russian bank has an operational loss of 1,9 million GEL.Banks’ Rating By Net Profit


TBC is increasing its leasing portfolio with an issue of 100 million

Free circulation of securities is not restricted. Securities are also listed on the Georgian Stock Exchange.Leasing Portfolio Secured Bonds represent an obligation of the issuer that is secured by the issuer's own leasing portfolio, which means amounts receivable from customers at any time during the collateral period.The issuer (the owner of 100% of the company's share is JSC "TBC Bank", the owner of 99.9% of the shares is the TBC Bank Group registered in the United Kingdom, and the remaining 0.12% are owned by physical and legal shareholders) actively uses the funds raised from financial institutions for its own operational activities to finance.It has raised funds from both Georgian commercial banks and international funds, which helps to lower the average weighted cost of raised funds, better manage liquidity and currency risks.The company made its first issue of bonds in 2014, in the amount of 2 million USD. This was followed by a 3 million USD issuance in 2016 and two issues of USD 5 million in 2018. Additionally, the company placed public securities in the amount of 58,400,000 GEL in 2020.The company also issued subordinated bonds in December 2022 and January 2023 in the amount of USD 6.05 million and USD 6.545 million, respectively. The bonds mature in 2028.Bonds are issued through private placement, in accordance with the legislation of Georgia. With the current issue, the company will fully refinance the existing GEL bonds and use the remaining amount to increase the leasing portfolio.With this issue, the previous placements of GEL will be fully closed, the term of which expires on March 20, 2023, and the remaining part will be used for the growth of the leasing portfolio.


For the first time in Georgia: Basisbank Marks Successful Placement of...

The purpose of the transaction is to develop the securities market of Georgia and attract additional secondary capital for Basisbank. In accordance with the bank's sustainable development policy, the funds will be directed to providing finance for retail, large and medium-sized businesses."The Georgian securities market is making strides and Basisbank is actively involved in this process. It is important for us to participate in these projects; thus, we support the development of the capital market in the country in order to ensure the stable and sustainable functioning of the banking system of Georgia. Capital increase will support the development of the bank, offering it additional financial resources for strategic and priority directions. I would like to thank our partners involved in this process for making such an important contribution to it," said David Tsaava, CEO of Basisbank."These bonds represent the first issue of this type on the capital market of Georgia and are the longest-term corporate debt securities issued to date. It is important that banks did not participate in the local capital market as issuers in the past. Basisbank's participation in the transaction is an important expression of the support for the local capital market. Appreciations to the management and transaction team of Basisbank for their contribution to the improvement of the capital market of Georgia. This transaction is an important step forward for Alpha Capital Advisor as an independent player of the capital market. We hope to contribute to the development of the capital market with many interesting transactions," said Irakli Elashvili, managing partner of Alpha Capital Advisor LLC.Alpha Capital Advisor LLC was the bond issue placement agent, Legal Firm BLC LLC was the legal advisor, and Pasha Bank Georgia JSC was the payment and calculation agent.Basisbank JSC30 years on the market, Basisbank Holding is a solid universal financial institution that provides quality financial services to both retail and large and medium-sized businesses; the group includes insurance and leasing businesses as well. By the financial data of 2022, total assets of Basisbank amount to GEL 3.2 billion.Alpha Capital Advisor LtdThe core business of the company is investment banking and consulting services concerning the placement of securities and providing various financial advice to companies and investors in corporate finance. On November 9, 2021, the company obtained from the National Bank of Georgia a license for the activity defined by clauses "A"-"D" of Article 23 of the Law on the Securities Market of Georgia. The goal of Alpha Capital Advisor is to contribute to the development of the capital market of Georgia, the South Caucasus and Central Asia, to support companies in diversifying their finance and creating additional value through mergers, acquisitions or disposals. The company offers clients unbiased and quality investment banking expertise, innovative solutions to problems and an approach aimed at one goal - to achieve the desired strategic result for the clients of Alpha Capital Advisor. Irakli Elashvili and Levan Tsutsunava are managing partners of the company.


Shares of Georgian companies fell sharply on the London Stock Exchange

Bank of Georgia Group (BGEO LN) shares closed at GBP 23.95/share (- 11.62% w/w and -16.98% m/m). More than 855k shares traded in the range of GBP 23.90 - 27.05/share. Average daily traded volume was 108k in the last 4 weeks. The volume of BGEO shares traded was at 1.74% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 21.90/share (-7.59% w/w and -15.44% m/m). More than 559k shares changed hands in the range of GBP 21.65 - 23.90/share. Average daily traded volume was 70k in the last 4 weeks. The volume of TBCG shares traded was at 1.01% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 7.46/share (-6.05% w/w and -7.56% m/m). More than 477k shares traded in the range of GBP 7.25 - 8.02/share. Average daily traded volume was 66k in the last 4 weeks. The volume of CGEO shares traded was at 1.02% of its capitalization.


The yield of corporate Eurobonds decreased slightly

In particular, Georgia Capital Eurobonds (GEOCAP) were trading at 98.01 (-0.30% w/w), yielding 8.31%.Georgian Railway Eurobonds (GRAIL) traded at 86.13 (-0.47% w/w), yielding 7.23%.Georgian Sovereign Eurobonds (GEORG) closed at 89.98 (-0.17% w/w) at 6.38% yield to maturity.


Rico To Issue Bonds Of GEL 130 MLN

According to the brokers, Rico's offer is the most profitable compared to the recent issues denominated in the national currency, with a low rate.Among them, MFO "Crystal", which in February announced the placement securities of GEL 25 million with a maturity of 2-year at TIBR6m+4.75% and also received a grant within the framework of the EBRD&EU capital market support program.Along with Crystal (MFO), MBC and GRPO (Georgian Renewable Energy Operations), it will be announced next week whether Rico will receive a grant or not.With this transaction, "Rico" will postpone its obligations towards the creditor banks. "Isbank" and "Pasha Bank" owe the least among them.Securities are also listed on the Georgian Stock Exchange.


Cartu increased current deposits by 41%

The increase is due to the growth in current accounts, up to 482 million GEL (01.03.2022 – GEL 341 million (+41%Y.Y). The term deposits portfolio has decreased to 490 million GEL (01.03.2022 – 515.6 million; -5%Y.Y).The bank has accrued benefits of up to 2 million GEL for depositors.With a portfolio of deposits of legal entities, with a share of up to 3%, "Cartu" ranks 5th place among large-portfolio banks.


Banks have 12 months to meet the 1% countercyclical buffer requirement...

Some countries have already set a positive buffer as a base rate, which varies between 1% and 2%. Taking into account the international experience and the characteristics of the financial sector of Georgia, the committee decided to set the neutral countercyclical buffer at 1%. A 12-month deadline was set for the banks to meet the above-mentioned demand.As a result of the financial stability policy implemented by the National Bank of Georgia, the financial sector maintains stability and continues lending to the economy without interruption. As of January 2023, banks have healthy capital and liquidity ratios, and asset quality has improved year-on-year. As in the previous year, banks started 2023 with significant gains, supported by lending activity and small loan losses. Through improved financial performance, most banks have already recovered their released capital buffers. Accordingly, a significant part of the banks will be able to meet the demand for countercyclical capital with internal sources, existing profitability and capital adequacy buffers. Taking into account the risks arising from the current situation in the region, the accumulation of capital buffers will help the banks in mitigating the risks and will contribute to the continuation of the financing of the economy during the period of stress and to the quick recovery.Credit activity during the current year will be commensurate with nominal economic growth. In January 2023, the annual growth of loans, excluding the effect of the exchange rate, amounted to 13.3%, which is largely due to the growth of business loans. Over the past two years, the debt-to-GDP ratio has been declining, reflecting the effects of high economic growth and exchange rate appreciation. As a result, the ratio of loans to GDP in the fourth quarter of 2022 will fall behind its long-term trend, however, it should be noted that the current level of the ratio of loans to GDP in Georgia is quite high compared to the indicators of similar countries. According to the committee's assessment, if the current trend of credit activity is maintained, it is expected that the growth of the portfolio this year will be commensurate with the nominal economic growth.The next session of the Financial Stability Committee will be held on May 31, 2023.


TBC Adjusts Tariffs

With the updated tariff scheme, transfer fee up to GEL 1,000 via the mobile bank amounts to GEL 1, while the fee increased to GEL 2 , if the transfer amount totals to GEL 1,000 -10,000.