Source: Micro Finance Bank of Azerbaijan.
Original press release available here.
BAKU, AZERBAIJAN, April 18 – Today in Baku, at a General Assembly of Shareholders of MFBA (Micro Finance Bank of Azerbaijan) the shareholders signed agreements to increase the share capital of MFBA by AZN 9 million (USD 11 million). This will increase the share capital of MFBA to AZN 20 million (USD 24 million) and total capital of the bank to over AZN 33 million (USD 40 million). This increase will make MFBA one of the 10 largest banks in Azerbaijan in terms of capital.
All the existing shareholders are participating in the current capital increase in proportion to their existing shareholding in MFBA. This means that the present ownership structure will remain unchanged with the European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, and KfW – the Development Bank of the German Government – all holding a 20 percent share each, and AccessHolding with a 16.53 percent share, and LFS Financial Systems GmbH – 3.47 percent.
Michael Jainzik, Chairman of the MFBA Supervisory Board, said, “The shareholders recognize the leading role played by MFBA in financing micro and small businesses in Azerbaijan, helping to diversify the economy and create new jobs. The capital increase demonstrates the shareholders’ commitment to supporting the growth of MFBA and its vital role in the development of the Azerbaijani economy.”
MFBA General Manager, Andrew Pospielovsky, said, “The decision of all the shareholders to increase their investment in MFBA demonstrated their confidence in the future of the bank.”
At the beginning of April 2008, MFBA’s outstanding credit portfolio exceeded 55,000 loans for a total amount of USD 140 million. During its first five years of operation, the bank has disbursed 120,000 loans for a total of USD 335 million with an average loan size of slightly more than USD 2,800. Total assets of the bank exceed USD 160 million.
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