The offering, priced above the upper level of the indicated price range, was almost five times over-subscribed and enabled BoG to diversify its capital structure, raise its profile and provide the necessary funding for growth.
The bank completed several acquisitions last year and in 2007, one of which was IntellectBank. This enhanced its position in retail banking by adding 25,000 customers to its client portfolio. The acquisition of leading insurance group Aldagi resulted in the creation of the strongest insurance franchise in Georgia, with a market share of about 40%. BoG also acquired a 9.9% stake in a Ukrainian bank.
In line with its strategy of building a dominant position in the retail market, BoG continued to expand its reach with the introduction of advanced financial services and aggressive customer acquisition. Last year, it launched PoS consumer loans, achieving market leadership in this segment. It also introduced credit cards to its customers.
Last year, BoG launched a $200m five-year Eurobond transaction, the first international bond offering from Georgia. By the first half of this year, it had raised $200m in debt funding, more than the entire Georgian banking sector, thus demonstrating its ability to raise funds in the international markets.
Lado Gurgenidze, chairman of the supervisory board says: “Over the past couple of years, since our team took over, BoG has been at the forefront of the banking sector developments in Georgia and, in many important respects, in the CIS as well. In a short period of time, we have been able to introduce an aggressive, performance-driven culture based on personal initiative, creativity and accountability.”
