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Investor Presentaiton

WELL-ESTABLISHED FUNDING STRUCTURE Interest Bearing Liabilities structure | 31 Dec 2019 Banking Business Interest Bearing Liabilities GEL 16.1bln Well diversified international borrowings | Dec-19 Banking Business Borrowings, GEL 1,848.8 mln, 11.5% Debt securities issued, GEL 2,120.1 mln, 13.1% Other amounts owed to credit institutions, GEL 2,085.3 mln, 12.9% Client deposits & notes, GEL 10,076.7 mln, 62.5% Current accounts and Time deposits, 50.0% demand deposits, 50.0% の European Bank for Reconstruction and Development OPIC KFW DEG ADB IFC FMO Finance for Development Black Sea Trade & Development Bank EFSE EUROPEAN FUND FOR SOUTHEAST EUROPE Other debt securities, GEL 431.5 mln, 10.9% Others borrowings, GEL 362.7 mln, 9.1% DFIs, GEL 1,486.1 mln, 37.4% Eurobonds, GEL 1,688.6 mln, 42.5% Borrowed funds maturity breakdown* Banking Business US$ millions 500 428 4.9% 400 6.6% 1.3% 316 0.5% 300 339 174 0.7% 200 101 100 90 142 87 89 9 34 48 О 11 10% " 5% 1.1% 0% 1.6% 0.1% 0.0% 0.0% -5% 72 -10% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Senior Loans Subordinated Loans % of Total assets Eurobonds Highlights for 2019 Group has a well-balanced funding structure with 62.5% of interest bearing liabilities coming from client deposits and notes, 9.2% from Developmental Financial Institutions (DFIs) and 10.5% from Eurobonds and notes issued, at 31 December 2019 At 31 December 2019, c.GEL 320 million undrawn facilities from DFIs with up to ten years maturity In December 2019, the Bank signed a ten-year US$ 107mln subordinated syndicated loan arranged by FMO in collaboration with other participating lenders. The facility is expected to be treated as a Bank Tier 2 capital instrument (upon disbursement and approval of the National Bank of Georgia) under the Basel III framework In July 2016, BGEO Group issued 7 year, US$ 350mln Eurobonds with 6.00% coupon (bonds were pushed down to BOG in March 2018). Bonds were trading at 4.133%** on 31 January 2020 In June 2017, BOG issued 3 year, GEL 500mln local currency international bonds with 11.00% coupon. Bonds were trading at 9.238%** on 31 January 2020 In March 2019, BOG issued US$ 100mln 11.125% Additional Tier 1 capital perpetual subordinated notes callable after 5.25 years and on every subsequent interest payment date, subject to prior consent of the NBG. Notes were trading at 9.704%** on 31 January 2020 BANK OF GEORGIA converted at GEL/US$ exchange rate of 2.8677 at 31 December 2019 ** source: Bloomberg 23
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