MICROCAPITAL STORY: International Finance Corporation (IFC) Investing USD 15m in Azerbaijan’s AccessBank to Expand Microfinance Services

The International Finance Corporation (IFC) announced that it will be investing up to USD 15 million in Azerbaijan’s AccessBank. AccessBank provides financial services to Micro and Small Enterprises (MSE) within Azerbaijan. Its mission is to be the leading provider of credit to MSE’s. The IFC, a member of the World Bank, will provide this long term loan to reach underserved regions of the country and provide micro and small businesses with access to credit.

AccessBank was founded in 2002 and is owned 100% by foreign shareholders. It has Total Assets of AZN 193.9 million (USD 241.3 million) and a Total Loan portfolio of AZN 163.7 million (USD 203.7 million) as at 31 December 2008. A press release from the bank announced that USD 100 million of the loan portfolio is for micro loans where loans to customers start from USD 100. AccessBank was previously named Microfinance Bank of Azerbaijan (MFBA) and was renamed in late 2008; for further details refer to this MicroCapital Story.

The Bank had 69,144 customers and 28,158 savers at the end of 2008. Although not reported to the MIX Market, a press release on AccessBank’s website announced that Fitch Ratings gave Access Bank the same rating as in prior years. AccessBank’s long term issuer default rating was BB+ with a ‘Stable’ forecast; the short-term rating was B. Azerbaijan has a BB+ rating and no corporation can exceed this.

Andrew Pospielovsky, the General Manager of AccessBank, said that the “IFC’s continuous support for Azerbaijan’s small-business sector is critical for local entrepreneurs and for our bank, especially during the economic downturn.”

Created in 1956, the IFC aims to foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. According to the organization’s 2008 Annual Report, the IFC made new investment commitments of USD 11.4 billion in the 2008 fiscal year. Recently the IFC announced loans of USD 450 million to MFIs (Microfinance Institutions) in Colombia, Peru and Ecuador; for further details refer to this MicroCapital Story.

By Sally Levy, Research Assistant

Additional Resources:

IFC Press Release: IFC Helps Azerbaijan’s Access Bank Expand Services to Micro and Small Enterprises

MicroCapital Story: Micro Finance Bank of Azerbaijan (MFBA) Renamed Access Bank

Access Bank: Home; Audited Financial Statements for the Year Ended 31 December 2008; Access Bank’s portfolio sets new records; Fitch Confirms Highest Rating for AccessBank

MIX Market: Access Bank

MicroCapital Story: International Finance Corporation (IFC) To Lend USD 450 Million and Increase Its Support of Microfinance Institutions (MFIs) in Colombia, Peru, Ecuador