AccessBank, a microfinance institution (MFI) based in Azerbaijan, recently received a USD 10 million loan from European Fund for Southeast Europe (EFSE), a Luxembourg-based organization focused on economic development in southeastern Europe and parts of Central Asia, to expand its loan portfolio. ESFE supports the provision of financial services to low-income households and micro- and small enterprises via loans to local financial institutions.
Founded in 2002, AccessBank reports total assets of USD 488 million, a gross loan portfolio of USD 378 million outstanding from approximately 120,000 borrowers, return on assets (ROA) of 4.71 percent, return on equity (ROE) of 21.4 percent and USD 178 million in deposits from 110,000 depositors as of 2011. Among AccessBank’s investors is Access Microfinance Holding of Germany, which also holds shares in Microbanks in Liberia, Madagascar, Nigeria, Tanzania and Tajikistan.
EFSE was established in 2005 by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. As of March 2012, EFSE has an outstanding investment portfolio of EUR 722.8 million (USD 885 million).
By Sarah Benali, Research Associate
About AccessBank Azerbaijan
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 2011, AccessBank reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 488 million, a gross loan portfolio of USD 378 million outstanding from approximately 120,000 borrowers, return on assets (ROA) of 4.71 percent, return on equity (ROE) of 21.4 percent and USD 178 million in deposits from 110,000 depositors.
About European Fund for Southeast Europe (EFSE)
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of March 2012, EFSE has an outstanding investment portfolio of EUR 722.8 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
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).
Sources and Additional Resources
Information sent to MicroCapital.org by EFSE
MicroCapital.org story: “MICROCAPITAL BRIEF: AccessBank of Azerbaijan Raises $10m from Symbiotics ‘MSME’ Bonds Impact Investing Platform,” December 3, 2012, https://www.microcapital.org/microcapital-brief-access-bank-of-azerbaijan-raises-10m-from-symbiotics-msme-bonds-impact-investing-platform/
MicroCapital.org story: “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $453k to Opportunity Microcredit Romania,” November 9, 2012, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-453k-to-opportunity-microcredit-romania/
MicroCapital.org story: “MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Launches Credit Cards,” October 17, 2012, https://www.microcapital.org/microcapital-brief-microfinance-institution-accessbank-of-azerbaijan-launches-credit-cards/
MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
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
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