MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $10m to Microfinance Institution AccessBank of Azerbaijan

The European Bank for Reconstruction and Development (EBRD), a London-based international finance institution, recently signed a five-year, USD 10 million loan agreement with AccessBank, an Azerbaijani microfinance institution (MFI). AccessBank will use the loan to widen its funding base, increase credit to small businesses and expand its lending portfolio for micro-, small and medium-sized enterprises (MSMEs) outside of Azerbaijan’s capital Baku. The interest rate on the loan has not been released.

EBRD and AccessBank closed another loan of USD 15 million in April of this year that was used to finance micro- and small businesses.

As of December 2011, AccessBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 488 million, a gross loan portfolio of USD 378 million, approximately 120,000 borrowers, return on assets of 4.47 percent and return on equity of 20.24 percent. AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million) invested in six countries as of March, 2012. In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).

By Charlotte Newman, Research Associate

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), an institution owned by 61 countries and two intergovernmental institutions; the International Finance Corporation (20 percent), the investment arm of the World Bank Group; the Black Sea Trade and Development Bank (20 percent), a financial institution with eleven European member countries; Germany’s KfW Bankengruppe (20 percent); Access Microfinance Holding AG (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 2011, AccessBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 488 million, a gross loan portfolio of USD 378 million, approximately 120,000 borrowers, return on assets of 4.47 percent and return on equity of 20.24 percent.

About Access Microfinance Holding AG
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 European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and more recently in Southern and Eastern Mediterranean region. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).

Sources and Additional Resources:

Press Release sent to MicroCapital.org from AccessBank

MicroCapital.org story, July 18, 2012, “MICROCAPITAL BRIEF: KfW Loans $30m to Microfinance Institution AccessBank of Azerbaijan,” https://www.microcapital.org/microcapital-brief-kfw-loans-30m-to-microfinance-institution-accessbank-of-azerbaijan/

MicroCapital.org story, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $15m to Microfinance Institution AccessBank of Azerbaijan for Micro-, Small and Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-15m-to-microfinance-institution-accessbank-of-azerbaijan-for-micro-small-and-medium-sized-enterprises-msmes/

MicroCapital Universe Profile: AccessBank
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=AccessBank

MicroCapital Universe Profile: Access Microfinance Holding AG
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Microfinance+Holding+AG+%28AccessHolding%29

MicroCapital Universe Profile: European Bank for Reconstruction and Development
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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