Source: Micro Finance Bank of Azerbaijan (MFBA).
Search Results for: "MFBA"
MICROCAPITAL STORY: Dutch Firm PGGM Commits $316m to Microfinance Investments
Dutch firm PGGM, the asset manager for the Netherlands’ healthcare pension fund, Pensioenfonds Zorg & Welzijn (PZW), has announced a EUR 200 million (USD 316 million) commitment to specialist fund managers affiliated with microfinance over the next few years.
MICROCAPITAL STORY: Evaluating Microfinance’s Performance in Turbulent Markets, Part 1 of a 4-Part Series on the Cracking the Capital Markets III Conference Hosted by ACCION and Credit Suisse
From March 10-11, 2008, ACCION International held the third Cracking the Capital Markets conference on microfinance investment. ACCION is a private, non-profit microfinance organization, specializing in global micro-enterprise loans, business training, and other financial services. The conference was co-hosted by Credit Suisse and brought together hedge fund managers, institutional and private investors, leading rating agencies, and microfinance institutions (MFIs) to discuss the challenges, successes, and future of microfinance investments. The second and third articles of this series can be found on MicroCapital’s website.
NEWS WIRE: Azerbaijan: Micro Finance Bank of Azerbaijan Re-Distributes Shareholder’s Stocks
Source: Trend Capital.
MICROCAPITAL SPECIAL FEATURE: 2007 Equity Investments in Small and Medium Sized Microbanks, Part 3 of 3
December 10, MicroCapital.org featured Part 2 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Previously, detailed information was provided on institutions with less than USD 100 million in assets. Here, in Part 3, we provide detailed financial and outreach information on microbanks with total assets greater than USD 100 million and less than USD 200 million. The institutions are presented in ascending order based on asset size.
MICROCAPITAL STORY: IFC and BP to Fund Expansion of Services by the Micro Finance Bank of Azerbaijan
The International Finance Corporation (IFC), a member of the World Bank Group, and BP, a British-based multinational oil supplier have agreed to provide additional funding to the Micro Finance Bank of Azerbaijan (MFBA), so it can improve access to finance for micro and small enterprises in western Azerbaijan by expanding its branch network to the towns of Mingechevir and Gazakh and enhancing services in the Ganja branch. The funding will consist of a USD 1 million grant from BP and USD 2.3 million of the IFC and the MFBA’s own investments. BP’s contribution will be used to support international credit experts and develop local loan officers and branch managers.
PRESS RELEASE: With Loan From SNS Institutional Microfinance Fund, Micro Finance Bank of Azerbaijan Claims First Deal From Abroad in Local Currency
MFBA and SNS Institutional Microfinance Fund, advised by Developing World Markets, concluded the first Azeri Manat Loan funded by international private capital
MICROCAPITAL STORY: Micro Finance Bank of Azerbaijan Receives First Private Investor Loan in Manat Currency (AZN)
The Micro Finance Bank of Azerbaijan (MFBA), a central Asian and eastern European microfinance institution (MFI) in Azerbaijan, received a loan of AZN 4.2 million (USD 4.95 million) from the SNS Institutional Microfinance Fund, a Dutch investment fund. It is the first loan from an international private-sector financial institution denominated in Azerbaijan’s local currency, the Manat. The loan will be used to lend to small businesses in Azerbaijan.
MICROCAPITAL SPECIAL FEATURE: 2007 Equity Investments in Small and Medium Sized Microbanks, Part 2 of 3
On December 5, MicroCapital.org featured Part 1 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Here, in Part 2, we provide detailed financial and outreach information on microbank’s with total assets under USD 100 million. The institutions are presented in ascending order based on asset size.
PRESS RELEASE: Oil Giant BP Seeks Positive Publicity From Donation of $1m to International Finance Corporation (IFC) Investment in Micro Finance Bank of Azerbaijan
Source: International Finance Corporation (IFC).
NEWS WIRE: Microfinance Bank of Azerbaijan Launches Agricultural Loans
Source: Trend Capital
Article available here.
The Microfinance Bank of Azerbaijan (MFBA) has launched a loan product for people whose business is related to agriculture. The new product is basically assigned for farmers and farm workers. The project has been worked on for quite a long period and the MFBA has already started disbursing loans in the regional branches in Sheki and Lenkoran.
MICROCAPITAL STORY: Microfinance Bank of Azerbaijan Receives $8 Million Loan from Blue Orchard Finance, its Largest Loan Ever
The MicroFinance Bank of Azerbaijan (MFBA) receives a loan from Blue Orchard Finance, a Swiss-based asset management company specializing in microfinance. The 5-year loan is on the order of USD 8 mm, and marks the largest single loan ever made to MFBA by any organization. The funds will be used by MFBA to provide further loans to support the growth of Azeri micro and small businesses (see Press Release on Microcapital.org).
PRESS RELEASE: New IFC and Microfinance Bank of Azerbaijan Initiative to Provide Local Suppliers with Greater Access to Finance
Baku, Azerbaijan, May 16, 2007—IFC, the private sector arm of the World Bank Group, and the Micro Finance Bank of Azerbaijan today announced the launch of a Supplier Finance Facility to improve access to finance for local small and medium enterprise suppliers to the oil and gas industry in Azerbaijan. The $15 million investment project is led by IFC in partnership with BP, the transnational energy company, and its co-venturers, who are shareholders in a number of oil and gas projects in Azerbaijan.
Dutch Triodos-Doen and Triodos Fair Share Fund Loan USD2 Million to Microfinance Bank of Azerbaijan
The CGAP-MIX MCM Newsletter reported recently that the Microfinance Bank of Azerbaijan (MFBA) recently received a USD2 million loan from the Triodos-Doen Foundation and the Triodos Fair Share Fund. This was the second loan to the microfinance bank by Triodos-Doen, after its loan of USD1.5 million in August 2005, (page 17) which carried an interest rate of LIBOR +5%. There is no other available information on the terms of the latest loan.
Microfinance Bank of Azerbaijan Partners with Blue Orchard Microfinance in US$120 Million Bond Issue
The Microfinance Bank of Azerbaijan (MFBA) is a full scale commercial bank and the leading microfinance provider in Azerbaijan. The bank has disbursed over 16,000 loans totaling over US$52 million. Its major shareholders include the European Bank for Reconstruction & Development, The International Finance Corporation, KfW Development Bank, LFS Financial Systems GmbH, and the Black Sea Trade and Development Bank. The Microfinance Bank of Azerbaijan does not report to the Microfinance Information Exchange (MIX) and no further information on its performance is publicly available.
In its latest deal, MFBA received a US$4 million loan from Swiss group, Blue Orchard Microfinance SA. The loan was financed by Blue Orchard’s latest bond issue of US$120 million, funded by private commercial investors worldwide. In addition to MFBA, 21 other microfinance institutions will benefit from funding financed by the bond issue. This marks the first time that these institutions have had formal access to the European capital markets.
Additional Resources
1) Microfinance Bank of Azerbaijan
2) Blue Orchard Microfinance SA
3) The MIXMarket
German Development Bank KFW makes $5 Million Microfinance Investment in Microfinance Bank of Azerbaijan
Kfw, a German development bank established in 1948 to support small and medium-sized enterprises (SMEs) and start-ups is providing a $5 million loan to the Microfinance Bank of Azerbaijan (MFBA). Kfw, one of the ten largest banks in Germany and a historically strong partner to the microfinance industry, had å¥341 billion in total assets at the close of 2005. Recently, the group participated in a å¥30 million equity financing with the World Bank that established the Southeast Europe Microfinance Fund. See the January 10, 2006 blog for more information on this deal.
MFBA was established in 2002 by four shareholders: European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank (BSTDB) and LFS Financial Systems GmbH (LFS). In December of 2004, KfW became the fifth shareholder. Based upon information released earlier this month, MFBA enjoyed a strong financial performance in 2005. Since inception, the organization has disbursed 18,825 loans, with 9,608 loans disbursed in 2005 alone. Also, MFBA’s credit portfolio nearly tripled in 2005 and reached $17.5 million, 169% greater than portfolio indicators for January 01, 2005. The Bank’s assets grew substantially in 2005, reaching $22.4 million – up from $9.3 million in 2004.
Impulse Microfinance Investment Fund Made $1,250,000 Debt Investment in Azerbaijan Micro Finance Bank (AMFB)
Established in 2002 by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, and German LFS Financial Systems GmbH, AMFB provides financial services to micro and small business within the country. The bank’s typical microloans are between $400 and $10,000 for a maximum of 9 months. In June 2005, the Azerbaijan Microfinance Association reported that AMFB had a total loan portfolio of more than $11.4 million. It is the only one of the 45 commercial banks in Azerbaijan that focuses on microfinance services. AMFB does not report to the MIX Market, the World Bank’s microfinance information clearinghouse. Further information about their performance is not publicly available.
Established in 1992, Incofin invests in MFIs in 14 countries, and in mid-2005 had total assets of $5.6 million. The duration of Incofin’s loans, which are between $120,000 and $600,000, is five years, and the terms offered are “LIBOR plus full cost plus full risk”. At the end of 2004, Incofin, along with KBC, Boerenbond, VDK Spaarbank, Volksvermogen (Belgian institutional investors) set up the Impulse Microfinance Investment Fund, which had initial capital of å¥5 million. By mid-2005, the fund’s assets were worth $15,413,875. The fund invests between $300,000 and $1.5 million in MFIs, and offers the same terms as Incofin.
$4.5 Million Microfinance Investment into Azerbaijan Micro Finance Bank Helps Establish Credit Line
The Azerbaijan Micro Finance Bank (AMFB) recently received a $3 million loan from the Black Sea Trade and Development Bank and a $1.5 million loan from the Triodos-Doen Foundation to be used as credit lines for small businesses. Established in 2002 by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, and German LFS Financial Systems GmbH, AMFB provides financial services to micro and small business within the country. The bank’s typical microloans are between $400 and $10,000 for a maximum of 9 months. In June 2005, the Azerbaijan Microfinance Association reported that AMFB had a total loan portfolio of more than $11.4 million. It is the only one of the 45 commercial banks in Azerbaijan that focuses on microfinance services.
AMFB’s investor, the Black Sea Trade and Development Bank, is an “international financial institution” created in 1998 by the governments of
Another AMFB investor, The Triodos-Doen Foundation, founded by Dutch Triodos Bank and the Doen Foundation in 1994, provides loans ranging from $200,000 to $1 million for a maximum of five years to microfinance institutions (MFIs). The terms offered to MFIs are “Libor plus full cost plus full risk” and the “interest rate must be sufficient to cover potential devaluation against the Euro plus to cover costs of 8%.” The fund’s total assets stand at $34.822 million; $30.643 million of which has been allocated to microfinance investment.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “Social and Economic Background of Azerbaijan.”
3) “Micro Finance Bank of Azerbaijan: Overview.”
4) “Micro Finance Bank of Azerbaijan: Mission.”
5) “Qualisteam: Black Sea Trade and Development Bank.”
6) Black Sea Trade and Development Bank (BSTDB) Press Release: “Black Sea Trade and Development Bank.”
7) MIX Market: “Triodos-Doen Foundation: Fund Instruments.”
8) MIX Market: “Triodos-Doen Foundation: Fund Description.”
9) “Black Sea Trade and Development Bank: A New Financial Player in the Balkans.”
10) “Microfinance in Azerbaijan.”