Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), a Dutch development finance institution, recently notified MicroCapital that it has arranged a USD 60 million syndicated loan facility for AccessBank, a for-profit microfinance institution located in Azerbaijan. Financial institutions participating in the loan include Oesterreichische Entwicklungsbank AG (OeEB), the Austrian development bank, and Societe de Promotion et de Participation pour la Cooperation Economique SA (PROPARCO), a French public-private development finance institution. The amount committed by each organization is unavailable. The loan will support AccessBank’s lending activities to micro- and small businesses in rural areas.
As of March 2013, AccessBank reported total assets of USD 704 million, a gross loan portfolio of USD 584 million and 133,005 active borrowers. AccessBank reported 172,552 active depositors with USD 241 million in total deposits, return on assets (ROA) of 17.10 percent and return on equity (ROE) of 124.94 percent in December 2012. AccessHolding, a German joint stock company, holds a 16.5-percent share in AccessBank Azerbaijan as of March 2012. AccessHolding also has stakes in microfinance institutions in Tajikistan and four African countries.
In 2012, FMO reported total assets of EUR 5.6 billion (USD 7.3 billion), and OeEB reported total assets of EUR 347 million (USD 454.2 million). In 2012, PROPARCO reported a loan portfolio of EUR 3.1 billion (USD 4.1 billion) deployed in 60 countries.
By Jennifer Young, Research Associate
About AccessBank
Founded in 2002, AccessBank provides credit and other financial services to Azerbaijan’s micro- and small businesses and low-and middle-income families. Access Bank is owned by six shareholders: the Greece-based Black Sea Trade and Development Bank; the UK-based European Bank for Reconstruction and Development; the US-based International Finance Corporation; Germany’s Kreditanstalt für Wiederaufbau (KfW) (which holds stakes of 20 percent each); Access Microfinance Holding, a German microfinance investor (with 16.53 percent of the firms shares) and LFS Financial Systems, a German consulting company (with a 3.47-percent stake). As of March 2013, AccessBank reported total assets of USD 704 million, a gross loan portfolio of USD 584 million and 133,005 active borrowers and. AccessBank reported 172,552 active depositors with USD 241 million in total deposits, return on investment (ROA) of 17.10 percent and return on equity (ROE) of 124.94 percent in December 2012.
About AccessHolding
Access Microfinance Holding AG (AccessHolding) was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop its investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding establishes new MFIs together with external partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services such as deposits. AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of March 2012, AccessHolding has investments in AccesBanque Madagascar (39.2-percent share); AccessBank Azerbaijan (16.5-percent share); AccessBank Tanzania (42.9-percent share); AB Microfinance Bank Nigeria Limited (50.1-percent share); AccessBank Liberia (52-percent share); and AccessBank Tajikistan (52-percent share).
About Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO)
The Netherlands Development Finance Company (FMO) is a public-private development bank that supports financial institutions and governments through “loans, participations, guarantees and other investment promotion activities including local-currency investments. It was founded in 1970 by the “Dutch government, private sector, employers and employee organizations.” In 2012, FMO reported total assets of EUR 5.6 billion (USD 7.3 billion).
About Oesterreichische Entwicklungsbank AG (OeEB)
Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. OeEB seeks to provide long-term financing for the implementation of private sector projects in developing countries to promote sustainable development. OeEB also provides technical assistance in an effort to enhance the development impact of projects. In 2012, OeEB reported total assets of EUR 347 million (USD 454.2 million).
About PROPARCO
Established in 1977, Société de Promotion et de Participation pour La Coopération Economique (PROPARCO – The Investment and Promotions Company for Economic Cooperation) is a development finance institution based in Paris, France, that is jointly held by private shareholders and the Agence Francaise de Developpement (AFD), an institution of the French government. PROPARCO’s mission is “to be a catalyst for private investment in developing countries which targets growth, sustainable development and reaching the United Nation’s Millennium Development Goals (MDGs).” In 2012, PROPARCO reported a loan portfolio of EUR 3.1 billion (USD 4.1 billion) disbursed to 63 projects in 60 countries.
Sources and Additional Resources
Information provided to MicroCapital by FMO.
MicroCapital Story, May 29, 2013, “MICROCAPITAL BRIEF: Azerbaijan Microfinance Association Considers Credit Bureau for Microlenders,” https://www.microcapital.org/microcapital-brief-azerbaijan-microfinance-association-considers-credit-bureau-for-microlenders/
MicroCapital Story, March 18, 2013, “MICROCAPITAL BRIEF: AccessBank of Azerbaijan Borrows $4.2m from European Bank for Reconstruction and Development (EBRD) for Energy Efficient Remodel of Headquarters,” https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-borrows-4-2m-from-european-bank-for-reconstruction-and-development-ebrd-for-energy-efficient-remodel-of-headquarters/
MicroCapital Story, March 12, 2013, “MICROCAPITAL BRIEF: Bridge Launches with $24m from Accion, Bamboo Finance, DEG, FMO, Paul Kocourek to Support Rural, Thrift Banks in the Philippines,” https://www.microcapital.org/microcapital-brief-bridge-launches-with-24m-from-accion-bamboo-finance-deg-fmo-paul-kocourek-to-support-rural-thrift-banks-in-the-philippines/
MicroCapital Story, January 10, 2013, “MICROCAPITAL BRIEF: LOLC Microcredit Limited of Sri Lanka Receives $55m Syndicated Loan Funds from FMO, OPEC Fund for International Development, PROPARCO, Cordiant Capital,” https://www.microcapital.org/microcapital-brief-lolc-microcredit-limited-of-sri-lanka-receives-55m-syndicated-loan-funds-from-fmo-opec-fund-for-international-development-proparco-cordiant-capital/
MicroCapital Universe Profile: AccessBank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AccessBank
MicroCapital Universe Profile: AccessHolding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Microfinance+Holding+AG+%28AccessHolding%29
MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29
MicroCapital Universe Profile: Oesterreichische Entwicklungsbank AG (OeEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oesterreichische+Entwicklungsbank+AG+%28OeEB%29
MicroCapital Universe Profile: PROPARCO, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PROPARCO
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