AccessBank, a microfinance institution (MFI) based in Azerbaijan, has received the first tranche of USD 10 million as part of a USD 20 million syndicated loan from Netherlands Development Finance Company (FMO), a Dutch public-private partnership that aims to promote developing economies, and Oesterreichische Entwicklungsbank AG (OeEB), the development bank of Austria. The three-year syndicated loan was organized by FMO with participation from OeEB, with each institution contributing USD 10 million. The loan will be directed to financing micro- and small businesses in Azerbaijan.
FMO’s CEO Mr Nanno Kleiterp said, “This debt facility provides Access Bank with the possibility to expand their business. It will strongly contribute to the further economic development of Azerbaijan [1]”. AccessBank General Manager Dr Andrew Pospielovsky said, “This is the first funding we have received from FMO and OeEB and it will allow the bank to expand its financing of small business, especially in the agricultural sector and across the regions of Azerbaijan [1]”.
As of December 31, 2010, AccessBank reported total assets of USD 460 million, gross loan portfolio of USD 340 million and 120,000 customers. AccessBank also reported a deposit portfolio of USD 150 million.
By: Alexandra Pattee
About AccessBank: AccessBank was founded in 2002 as the Micro Finance Bank of Azerbaijan (MFBA) and was renamed AccessBank in 2008. AccessBank is owned by six organizations: the European Bank of Reconstruction and Development (20 percent), a financial institution owned by 61 countries and two intergovernmental institutions; the International Finance Corporation (20 percent), the investment arm of the World Bank; the Black Sea Trade and Development Bank (20 percent), a financial institution with eleven European member countries; Germany’s KfW Bankengruppe (20 percent); AccessHolding (16.53 percent), a commercial microfinance holding company based in Germany; and LFS Financial Systems GmbH (3.47 percent), a German consulting and management company that focuses on microfinance projects. As of December 31, 2010, AccessBank reported total assets of USD 460 million, gross loan portfolio of USD 340 million and 120,000 customers. AccessBank also reported a deposit portfolio of USD 150 million.
About Netherlands Development Finance Company (FMO): The Netherlands Development Finance Company (FMO) is a Dutch public-private partnership that aims to promote developing international economies. Founded in 1970, FMO aims to encourage development by promoting entrepreneurship. FMO has an investment portfolio of EUR 5.04 billion (the equivalent of USD 6.5 billion) as of 2009. FMO operates in Africa, Asia, Eastern Europe, and Latin America. FMO’s investment portfolio is USD 4.6 billion
About Oesterreichische Entwicklungsbank AG (OeEB): Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. OeEB provides long-term financing for the implementation of private sector projects in developing countries in an effort to promote sustainable development. OeEB provides financing solutions for various long-term investments that would otherwise find it difficult to raise funding in international capital markets. OeEB also provides technical assistance in an effort to enhance the developmental impact of projects. As of December 31, 2009, OeEB reports total assets of EUR 106 million (USD 150 milloin), investment finance of EUR 72 million (USD 102 million) over eight projects, and contributions to the creation of 6,330 jobs.
Sources and Resources:
[1] AccessBank Press Release, “AccessBank receives $10m from FMO and OeEB”Submitted directly to MicroCapital
MicroCapital.org Article, April 1, 2011, “Sacombank of Vietnam Issues 10-Year $150m Subordinated Syndicated Loan Arranged By the Netherlands Development Finance Company (FMO) to Support Banking, Small and Medium-Sized Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-sacombank-of-vietnam-issues-10-year-150m-subordinated-syndicated-loan-arranged-by-the-netherlands-development-finance-company-fmo-to-support-banking-small-and-medium-sized-ente/
MicroCapital.org Article, March 8, 2011, “Microfinance Institution AccessBank of Azerbaijan Receives “BB+” Rating from Fitch”, https://www.microcapital.org/microcapital-brief-microfinance-institution-accessbank-of-azerbaijan-receives-?bb?-rating-from-fitch/
MicroCapital.org Article, January 26, 2011, “AccessBank of Azerbaijan Reports Deposit Portfolio Increase of 86 Percent During 2010”, https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-reports-deposit-portfolio-increase-of-86-percent-during-2010/
MicroCapital.org Article, March 30, 2010, “AccessBank, a Microfinance Institution (MFI) in Azerbaijan, Increases its Share Capital from $27m to $52m”, https://www.microcapital.org/microcapital-brief-accessbank-a-microfinance-institution-mfi-in-azerbaijan-increases-its-share-capital-from-27m-to-52m/
MicroCapital.org Article, March 26, 2010, “Nanno Kleiterp of the Netherlands Development Finance Company (FMO)”, https://www.microcapital.org/meet-the-boss-nanno-kleiterp-of-the-netherlands-development-finance-company-fmo/
MicroCapital.org Article, March 16, 2010, “AccessBank, a Microfinance Institution (MFI) in Azerbaijan, Issues Shares Worth $24.8m”, https://www.microcapital.org/microcapital-brief-accessbank-a-microfinance-institution-mfi-in-azerbaijan-issues-shares-worth-248m/
MicroCapital.org Article, April 28, 2009, “International Finance Corporation (IFC) Investing USD 15m in Azerbaijan’s AccessBank to Expand Microfinance Services”, https://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-investing-usd-15m-in-azerbaijan%E2%80%99s-accessbank-to-expand-microfinance-services/
MicroCapital’s Microfinance Universe: AccessBank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AccessBank
MicroCapital’s Microfinance Universe: Netherlands Development Finance Company (FMO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Net?
MicroCapital’s Microfinance Universe: Oesterreichische Entwicklungsbank AG (OeEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oesterreichische+Entwicklungsbank+AG+%28OeEB%29
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