Proparco (Groupe Agence Française de Développement) - the French Development Finance Institution and Credo Bank signed an equity investment agreement based on which Proparco has become a new shareholder of the bank. The investment supports the acquisition of Finca Bank Georgia by Credo and serves as a strong capital base for further growth of the bank.
“We count more than five years of outstanding partnership with Proparco through GEL 120 million debt investments and technical assistance. In the new role as a shareholder, Proparco will significantly contribute to further strengthening of Credo Bank’s positioning and reinforce our core aim of providing sustainable financial services to micro, small and medium entrepreneurs with special focus on digitalization and delivery of innovative products. With more than 24 years of operation in Georgian financial market, Credo Bank has demonstrated resilience, maintained stable growth and reliable customer services.
This landmark transaction underlines shareholders’ trust in the bank and it being sound platform for new investment and future growth. Here, I would also like to thank our existing shareholders German Access Microfinance Holding AG, the Dutch Triodos Investment Management and Swiss responsAbility Investments AG for their contribution in onboarding a new shareholder.” – said Zaza Pirtskhelava General Director of Credo Bank.
Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 40 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle-East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education.
Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change. For a World in Common.
“Since 2015, the partnership between Proparco and Credo Bank has only grown stronger thanks to a shared commitment to the sustainable development of Georgia. Over the years, Credo Bank has proven its strong capacity in bringing financial products and services to entrepreneurs located in outlying or rural areas, including women, thus contributing to two of Proparco's key priorities: financial inclusion and women empowerment. Proparco is very pleased to see the growing impact of Credo Bank's activities on the Georgian economy and its society," said Stéphane Froissardey, Proparco's Regional Director for Turkey, Caucasus, Central Asia, Balkans and Eastern Europe.