Page 32 - bne IntelliNews Georgia country report November 2017
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8.3.1 ECM news
The European Bank for Reconstruction and Development (EBRD) sold 30% of its shares in Georgia's largest lender, TBC Bank, on the London Stock Exchange on June 5, the multilateral lender said in a press statement. The EBRD, which purchased a 12.4% stake in the Georgian bank in 2009, said that its move was prompted by the lender's good performance on the stock exchange since it listed in 2014. The news comes after an eventful year for the bank which saw it acquire a premium listing on the London Stock Exchange (LSE) last August, buy the fourth largest bank in Georgia - Bank Republic - and overtake the previous incumbent as the country's largest lender, post double-digit growth in assets, profitability and lending and secure almost $200mn in financing from several international financial institutions (IFIs). The sale was completed at "a small discount" compared to the price of the shares, which stood at GBP17 on June 5. The EBRD agreed to a 90-day lock-up period on the residual stake.
8.4 International ratings
Georgia - Rating agency
as of September 2017
Bond rating: Moody’s
Ba2 (Stable)
Bond rating: Fitch
BB- (Stable)
Bond rating: S&P
BB- (Stable)
Fitch Ratings forecasts improved economic outlook as it affirms Georgia at BB-
The agreement between the Georgian government and the International Monetary Fund (IMF) s igned earlier this year provides an anchor to macroeconomic policy and increases confidence in Tbilisi's reform efforts, ratings agency Fitch wrote in a report released on September 22.
In reaffirming the country's long-term foreign currency issuer default rating at 'BB-' with a stable outlook, Fitch noted that the resilience of the Georgian economy is being undermined by its external finances. Thus, the country's current account deficit stood at 13.5% of GDP in 2016, up from 12% in 2015, driven by a worsening of the primary income deficit. At 66% of
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