TBC Bank Group has entered a joint venture with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), both of which will acquire stakes of up to 20% each in its subsidiary in Uzbekistan.
Listed on the London Stock Exchange, TBC Bank Group is a considered a leading banking group in Georgia.
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TBC Uzbekistan (TBC UZ) is claimed to be the first digital bank in Uzbekistan, and has garnered 850,000 downloads since it was launched in October 2020.
The bank offers financial products to over 630,000 registered retail users.
As per the terms, EBRD and IFC will each invest $9.4m in return for up to 20% stake each.
TBC UZ has two branches and 34 “client liaison points” across 12 regional cities.
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By GlobalDataTBC Bank CEO Vakhtang Butskhrikidze said: “This joint venture arrangement marks another important milestone for our expansion in Uzbekistan, allowing us to accelerate our growth in the country and offer a wide range of innovative and affordable products to the population.
“TBC UZ successfully operates based on our innovative fintech platform, Space, which offers retail banking solutions through a mobile app.”
IFC director for Europe and Central Asia Wiebke Schloemer said: “We are further deepening our partnership with TBC Bank Group.
“IFC is supporting TBC’s efforts in expanding banking services, based on innovative and technological solutions, across Uzbekistan.
“This investment is also well aligned with our strategy to help Uzbekistan promote greater market competitiveness through increasing the share of private-sector participation in the banking industry.”
EBRD director and head of Uzbekistan Alkis Drakinos said: “This is the first equity investment in the banking sector of Uzbekistan since the EBRD’s re-engagement with the country in 2017.”
The two international entities also have options to divest their shares back to TBC following the sixth anniversary of the transaction.
TBC also has an option to purchase those shares back following the 10th anniversary of the deal.
EBRD and IFC are expected to inject additional capital of up to $34.3m by 2024.
