MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Increases Share Capital to $108m

AccessBank, an Azerbaijan-based microfinance institution (MFI), recently announced that it has increased its share capital by 25 percent from AZN 67.8 million (USD 86 million) to AZN 85 million (USD 108 million). The increase is a result of the capitalization of a small amount of retained earnings from 2011 and an increase in the value of AccessBank shares from AZN 3.39 (USD 4.31) to AZN 4.25 (USD 5.41). The number of shares remains at 20 million, and their distribution among AccessBank’s owners remain the same.

The increase brings the bank’s capital adequacy, or ratio of capital to risk to approximately 25 percent, approximately double the minimum requirement mandated by the Central Bank of Azerbaijan. According to a statement made by AccessBank General Manager Andrew Pospielovsky, the increase “further strengthens the foundation of the bank for future growth.”

Each of the following organizations owns 20 percent of AccessBank shares: the European Bank of Reconstruction and Development (EBRD), a multilateral investor in central Europe and central Asia; the International Finance Corporation (IFC), a member of the World Bank Group that supports private sector development; KfW Entwicklungsbank, a German state-owned development bank; and Black Sea Trade and Development Bank, an international financial institution based in Greece. The remaining shares are split between two German firms: AccessHolding, a microfinance holding company, which holds 16.53 percent of AccessBank’s shares, and LFS Financial Systems GmbH (LSF), which holds a stake of 3.47 percent.

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 and approximately 120,000 borrowers. It also reported return on assets of 7.68 percent, return on equity of 40.14 percent, deposits to loans of 46.26 percent and deposits to total assets of 34.61 percent.

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 and approximately 120,000 borrowers. As of December 2010, AccessBank reported return on assets of 7.68 percent return on equity of 40.14 percent, deposits to loans of 46.26 percent and deposits to total assets of 34.61 percent.

About Access Microfinance Holding AG (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:

AccessBank: Press Release: “AccessBank Increases Capital,” http://www.accessbank.az/en/page/2012-03-15.html

MicroCapital.org story, March 2, 2012, “MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Offers Vehicle Insurance,” https://www.microcapital.org/microcapital-brief-microfinance-institution-accessbank-of-azerbaijan-offers-vehicle-insurance/

MicroCapital.org story, January 4, 2012, “MICROCAPITAL BRIEF: Microfinance Institution AccessBank of Azerbaijan Disburses 500,000th Loan,” https://www.microcapital.org/microcapital-brief-microfinance-institution-accessbank-of-azerbaijan-disburses-500000th-loan/

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

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

MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: KfW Entwicklungsbank (KfW)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29

MicroCapital Universe Profile: LFS Financial Systems GmbH (LFS)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LFS+Financial+Systems+GmbH+%28LFS%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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