AccessBank, a microfinance institution (MFI) in Azerbaijan, has increased its share capital from AZN 21.8 million, the equivalent of over USD 27 million, to AZN 41.8 million, the equivalent of over USD 52 million. This increase was achieved by capitalizing retained earnings. The face value of the shares increased from AZN 1.00 to AZN 2.09, while the total number of shares remained at 20 million. There was also no change in the distribution of the shares or the shareholder structure. AccessBank is owned by six organizations: the European Bank of Reconstruction and Development (EBRD), a financial institution owned by 61 countries and two intergovernmental institutions; the International Finance Corporation (IFC), the investment arm of the World Bank; the Black Sea Trade and Development Bank, a financial institution with eleven European member countries; Germany’s KfW Development Bank; AccessHolding, a commercial microfinance holding company based in Germany; and LFS Financial Systems GmbH, a German consulting and management company that focuses on microfinance projects.
By Christopher Maggio, Research Assistant
About
AccessBank
Description:
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 (EBRD) (20 percent), a financial institution owned by 61 countries and two intergovernmental institutions; the International Finance Corporation (IFC) (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 Development Bank (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.
According to the MIX Market, as of December 31, 2009, AccessBank had total assets worth USD 374.5 million, a gross loan portfolio of USD 296.9 million and 99,936 active borrowers.
Just the Facts:
– Year Founded: 2002
– Shareholders: European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, KfW Development Bank, AccessHolding, and LFS Financial Systems GmbH
Contact Information
Andrew Pospielovsky
General Manager
andrew.pospielovsky@accessbank.az
Alovsat Guliyev str. 137
Baku
AZ
1000
Azerbaijan
bank@accessbank.az
Tel: +994 12 493 07 26
Fax: +994 12 493 07 96
Additional Resources:
MicroCapital’s Microfinance Universe profile: AccessBank
MicroCapital’s Microfinance Universe profile: EBRD
MicroCapital’s Microfinance Universe profile: IFC
MicroCapital’s Microfinance Universe profile: KfW
MicroCapital’s Microfinance Universe profile: AccessHolding
MicroCapital’s Microfinance Universe profile: LFS Financial Systems GmbH
PRESS RELEASE
AccessBank Increases Capital
AccessBank increases Share Capital to USD 52 mln
Baku, March 29, 2010. AccessBank has increased its share capital by AZN 21.8 million (USD 27 million) to AZN 41.8 million (USD 52 million). The share capital was increased by capitalizing retained earnings from previous years, or by converting the profit earned by the bank into share capital. The nominal face value of the shares was increased to AZN 2.09 from AZN 1.00, while the total number of shares remained the same at 20 million. Similarly there was no change in the distribution of shares or shareholding structure which remained with the European Bank of Reconstruction and Development (EBRD), the International Finance Corporation, the KFW Development Bank, and the Black Sea Trade and Development Bank (BSTDB) with 20% each, AccessHolding with 16.53% and LFS with 3.47%. The capital increase ensures strong capital adequacy for future growth of the bank – currently the total capital adequacy of the bank is over 25% – or twice the minimum requirement of the Central Bank of Azerbaijan.
AccessBank General Manager Andrew Pospielovsky, announcing the increase, said “The increase of the share capital to over USD 50 million creates a strong foundation for further growth of the bank and demonstrates the commitment of the shareholders to the bank and our mission of developing micro and small business, diversifying the economy, creating jobs and eliminating poverty.”
AccessBank’s mission is to provide access to financial services for Azerbaijan’s low and middle income households and micro and small business. AccessBank is recognized as the most reliable bank in Azerbaijan by Fitch Ratings (BB+Long-term IDR & D Individual rating) and is 100% foreign owned by international financial institutions, including: the European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank – the Development Bank of the German Government (20% share each), AccessHolding – a strategic investor in microfinance (16.5%), and LFS Financial Systems GmbH – a German consulting company (3.5%).
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