The European Bank for Reconstruction and Development (EBRD), a financial institution “owned by 61 countries and two intergovernmental institutions,” is providing a USD 6 million line of credit to Bank Respublika, a private commercial bank in Azerbaijan [1,2,3]. The line of credit will be used by Bank Respublika to provide loans to micro, small, and medium enterprises (MSMEs) in Azerbaijan [1]. The loans will be have both medium and long-term tenors [1]. The EBRD has previously provided loans to Bank Respublika totaling USD 27 million [1]. MicroCapital reported another, more recent, EBRD investment in Azerbaijan in December of 2009; a USD 10 million loan to AccessBank, a microfinance institution (MFI) [4]. The repayment, however, is to be in the AZN value of the loan, the equivalent of over AZN 8 million [4].
Search Results for: EBRD
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Extends $10m Synthetic Local Currency Loan to AccessBank of Azerbaijan
At the Azerbaijan Investment Summit held in London on December 8th, AccessBank, an Azerbaijani microfinance institution (MFI) with total assets of USD 239 million, signed an agreement on the first synthetic AZN loan to be extended by the European Bank for Reconstruction and Development (EBRD). Under the synthetic local currency loan, EBRD will provide USD 10 million to AccessBank, but the actual loan obligation by AccessBank to the EBRD will be the AZN value of the provided funds, about AZN 8 million.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) and Other Investors Provide €50 Million ($75.3 Million) Syndicated Loan Facility to Garanti Bank for Microfinance
The European Bank for Reconstruction and Development (EBRD) and other funders have provided a EUR 50 million, the equivalent of over USD 75.3 million, “syndicated loan facility” to Garanti Bank, a private bank in Turkey, to lend to micro, small, and medium enterprises (MSMEs) [1,2,3]. Loans will be provided for businesses outside of the cities of Ankara, Istanbul and Izmir as well as to continue support for female entrepreneuers in rural areas of Turkey [1]. This will aid in supporting Garanti Bank’s goals of “[broadening] geographical coverage” and increasing “competitive financing products to small businesses” [1]. The EBRD has provided EUR 20 million, the equivalent of over USD 30.1 million, of the funds for this loan facility. The remaining EUR 30 million, the equivalent of over USD 45.1 million, was provided by; the Netherlands Development Finance Company (FMO), a development bank that provdes entrepreneurial capital; the International Co-operation and Development Fund (TaiwanICDF), an organization that provides “technical assistance, investment and lending operations, education and training, and humanitarian assistance;” and the commercial banks AKA Ausfuhrkredit, Bank of Taiwan, BRE Bank, Chang Hwa Bank, Land Bank of Taiwan and Raiffeisenlandesbank Niederosterreich-Wien [1,4,5]. No specific breakdown of the division of this funding is available.
MICROCAPITAL.ORG STORY: The European Bank for Reconstruction and Development (EBRD) Increases Equity Stake in Russia’s Transcapitalbank from 25 Percent to 28.6 Percent
The European Bank For Reconstruction and Development (EBRD) is preparing to increase its ownership of Transcapitalbank, a Russian bank that provides loans to “medium-sized corporates, as well as micro and small businesses” and individuals [1,2,3] The subscription to a new issue of ordinary shares will increase EBRD’s stake from 25 percent 28.6 percent [1].
PRESS RELEASE: European Bank for Reconstruction and Development (EBRD) to Raise Stake in Russia’s Transcapitalbank
Source: European Bank for Reconstruction and Development (EBRD).
MICROCAPITAL.ORG STORY: EBRD Becomes Shareholder in Tajikistan’s Agroinvestbank
The European Bank for Reconstruction and Development (EBRD) is acquiring 25 percent plus one share stake in Agroinvestbank of Tajikistan for up to TJS 50 million (USD 12 million). Agroinvestbank and EBRD have worked together previously through the EBRD Tajik and Micro and Small Enterprises Framework (TMSEF), the EBRD Trade Facilitation Programme (TFP), and the EBRD Tajik Agriculture Finance Framework (TAFF). [4]
MICROCAPITAL STORY: The International Finance Corporation (IFC) in Washington, DC and European Investment Bank (EIB) in Luxembourg Create the Global Emerging Markets (GEMs) Risk Database Consortium with the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and Inter-American Development to Join (IDB)
The International Finance Corporation (IFC), a member of the World Bank Group, and the European Investment Bank (EIB), the long-term lending bank for the European Union (EU), have agreed to create a Global Emerging Markets Risk Database Consortium. Other international financial institutions (IFIs) that will be joining the Consortium include the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the Inter-American Development Bank (IDB). The Consortium is to pool data on individual institutions and strengthen risk-management practices among multilateral banks.
MICROCAPITAL STORY: European Bank for Reconstruction and Development (EBRD) Provides $4m Credit Line to Demir Kyrgyz International Bank (DKIB) of the Kyrgyz Republic for Microfinance Activities
The European Bank of Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment, will provide a USD 4 million line of credit to the Demir Kyrgyz International Bank (DKIB). DKIB will use the line of credit to extend loans to micro, small and medium enterprises (MSME) in the Kyrgyz Republic. In addition to the line of credit, the EBRD will offer training in credit appraisal to DKIB staff and technical assistance. The loans made by DKIB to MSME’s will range from USD 10,000 to USD 400,000.
MICROFINANCE STORY: The European Bank for Reconstruction and Development (EBRD) Lends $10M from Its Microfinance Program to Minsk Transit Bank (MTB) of Belarus
The European Bank for Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment in 30 countries in Central Europe and Central Asia, is lending USD 10 million to Minsk Transit Bank (MTB), a commercial bank established in 1994 and based in Minks, Belarus. According to Moody’s, MTB reported total assets of USD 150 million in 2007. MTB is one of six EBRD partner banks in Belarus. The five-year loan to MTB will be used to lend to privately-owned micro, small, and medium-sized businesses (MSMEs). As stated by the EBRD, the funding is to help small businesses in the country weather the crisis.
MICROCAPITAL STORY: New Microfinance Institution AccessBank Tajikistan Established with Investments Totaling USD 11 million from Access Microfinance Holding, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and Kreditanstalt fuer Wiederaufbau (KfW)
Several international finance organizations have invested in a new microfinance institution, AccessBank Tajikistan. Access Microfinance Holding AG (AccessHolding) will hold a majority stake in the new bank, and international investors including the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and Kreditanstalt fuer Wiederaufbau (KfW) will invest a total of USD 11 million for equity stakes. AccessBank Tajikistan will launch operations in late 2009 in the Tajik capital, Dushanbe.
MICROCAPITAL STORY: The European Bank for Reconstruction and Development (EBRD) Approves a $13m Credit Line for Azerdemiryolbank of Azerbaijan for Micro and Small Businesses under Its Microfinance Program
The European Bank for Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment in 30 countries in Central Europe and Central Asia, will allocate a USD 13 million credit line to Azerbaijan’s Azerdemiryolbank, a private banking institution established in 1989. Azerdemiryolbank lends to other banks and small businesses. As stated in the bank’s press release, its assets totaled AZN 208.48 million (estimated USD 259.3 million) as of June 2009. In 2005, the EBRD gained a 25%+1 share of Azerdemiryolbank via an equity investment through an acquisition of newly issued shares of Azerdemiryolbank. The Board of Directors for the EBRD covered and approved the credit line for Azerdemiryolbank to facilitate credits to the country’s micro, small, and medium-sized business sectors. It stated that of the total, USD 3 million will be provided for SME lending and USD 10 million for lending to the micro sector. The credit agreement signing is still pending. Further details on how the credit plan will be implemented have yet to be disclosed.
MICROCAPITAL STORY: EBRD Lends $34.9m to Polish Leasing Companies BZ WBK Leasing and BZ WBK Finance and Leasing
The EBRD has granted a EUR 25 million (USD 34.9 million) loan to each of two leasing subsidaries of Poland´s third largest bank and fourth largest leasing company, Bank Zachodni WBK. The subsidiaries, BZ WBK Leasing and BZ WBK Finance & Leasing, , provide medium- and long term lease financing to Polish small and medium enterprises (SMEs). Lucyna Stanczak, EBRD Director for Poland, commented“The loans will play an important role in keeping up leasing financing to SMEs outside the large cities at a time when funds are needed more than ever.” MicroCapital has also reported on EBRD´s February 2009 loan of USD 3.8 million to Inicjatywa Mikro, a microfinance institutuion (MFI) in Poland. The loan was directed towards micro and small Enterprise (MSE) development. According to the EBRD, only 3 percent of registered micro and small enterprises are financed by mainstream financial institutions. Microleasing, a new area of exploration for the EBRD, can allow business owners to use equipment without investing in its purchase. A list of past EBRD microleasing projects can be found here.
MICROCAPITAL STORY: The European Bank for Reconstruction and Development (EBRD) to Lend Up to $10m to Russia’s SKB Bank to Provide Loans for Small and Medium-sized Enterprises (SMEs) in the Urals
According to the European Bank for Reconstruction and Development (EBRD), up to USD 10 million will be provided to Russia’s SKB Bank in order to provide loans for small and medium-sized businesses/enterprises (SMEs) in the Urals. The EBRD’s four-year loan provides additional funding for the Russian banking sector as part of the EBRD’s response to the global credit crisis. Terms of the funding to Russia’s SKB Bank are not provided.
MICROCAPITAL STORY: European Development Finance Institutions Part 1: European Bank for Reconstruction and Development (EBRD) Invests Over USD 1 Billion in Microfinance Initiatives Since 2007
The European Bank for Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment in 27 countries in Central Europe and Central Asia, has supported the microfinance sector through its Micro, Small and Medium Business Program since its establishment in 1991. In the last two years alone, EBRD has provided over USD 1 billion – through debt, equity facilities and technical assistance – to microfinance programs throughout the region.
MICROCAPITAL STORY: The European Bank for Reconstruction and Development (EBRD) Provides $3.8m Loan to Inicjatywa Mikro with Technical Assistance Funded by the European Commission (EC) to Support the Development of Micro and Small Enterprises in Poland
The European Bank for Reconstruction and Development (EBRD) is providing the microfinance institution Inicjatywa Mikro with a 3.8 million USD loan to aid the development of micro and small enterprises in Poland. The loan is supported by technical assistance funded by the European Commission, the executive branch of the European Union. The financing comes under the EU/EBRD Preparatory Action Framework, which supports micro and small enterprises in the new EU member states, and aims to generally provide medium and long-term financing from the EBRD combined with technical assistance funded by the European Commission.
PRESS RELEASE: EBRD provides €3m loan to Inicjatywa Mikro
NEWS WIRE: EBRD signed one of the two syndicated loans with Access Bank
Source: ABC AZ.
MICROCAPITAL STORY: The European Bank for Reconstruction & Development (EBRD) Reflects on Six years of Microfinance in Azerbaijan
The European Bank for Reconstruction & Development (EBRD) held a conference in Azerbaijan in September focusing on the progress of its microfinance initiatives within the country to date. The event hosted international investors as well as government officials and entrepreneurs in the SME and microenterprise sectors within Azerbaijan.