MICROCAPITAL BRIEF: AccessBank of Azerbaijan Borrows $4.2m from European Bank for Reconstruction and Development (EBRD) for Energy Efficient Remodel of Headquarters

AccessBank, a for-profit microfinance institution based in Azerbaijan, recently received a loan of USD 4.2 million from the European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, that will provide 30 percent of the financing required to renovate its new headquarters in Baku.  The renovated headquarters is billed as the first “energy efficient” or “green” office building in the country and is projected to cut energy consumption by 42 percent. The loan, which represents EBRD’s first energy efficiency project in Azerbaijan, is to be disbursed as part of EBRD’s Caucasus Energy Efficiency Programme (CEEP), which offers credit lines for local partner banks to invest in energy utilization improvements. AccessBank has not disclosed the source of the remaining financing for the renovation.

As of year-end 2012, AccessBank reported USD 661 million in total assets, a gross loan portfolio of USD 528 million, approximately 126,000 active borrowers and 110,000 active depositors with USD 178 million in total deposits. AccessBank reported return on investment (ROA) of 4.71 percent and return on equity (ROE) of 21.41 percent in 2011. As of March 2013, EBRD has made 135 investments in Azerbaijan worth USD 1.52 billion. EBRD disbursed a total of USD 8.3 billion to finance operations in its 29 member countries in Eastern Europe, Central Asia and North Africa in 2011.

By Brian LeBlanc, Research Associate

About AccessBank

Founded in 2002, AccessBank provides credit and other financial services to Azerbaijan’s micro- and small businesses and low-and middle-income families. Access Bank is owned by six  shareholders: the Greece-based Black Sea Trade and Development Bank; the UK-based European Bank for Reconstruction and Development; the US-based International Finance Corporation; Germany’s Kreditanstalt für Wiederaufbau(KfW) (20 percent each); Access Microfinance Holding, a German microfinance investor (16.53 percent); and LFS Financial Systems, a German consulting company (3.47 percent). As of year-end 2012, AccessBank reported USD 661 million in total assets, a gross loan portfolio of USD 528 million, approximately 126,000 active borrowers and 110,000 active depositors with USD 178 million in total deposits. AccessBank reported return on investment (ROA) of 4.71 percent and return on equity (ROE) of 21.41 percent in 2011.

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral financial institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).

Sources and Additional Information:

AccessBank press release, “AccessBank secures USD 4.2 million energy efficiency loan from EBRD for new ‘green’ head office,” http://www.accessbank.az/en/news/ebrd_energetic/#contentLeft

MicroCapital story, March 12, 2013, “MICROCAPITAL BRIEF: EBRD Loan of $39 to Unicredit Bank Serbia for On-lending to Small and Medium-Sized Enterprises Pending Final Approval,” https://www.microcapital.org/microcapital-brief-ebrd-loan-of-39m-to-unicredit-bank-serbia-for-on-lending-to-small-and-medium-sized-enterprises-pending-final-approval/

MicroCapital story, January 7, 2013, “MICROCAPITAL BRIEF: International Finance Corporation Loans $15, to AccessBank to Aid Small Enterprises, Microentrepreneurs in Azerbaijan,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-loans-15m-to-accessbank-to-aid-small-enterprises-microentrepreneurs-in-azerbaijan/

MicroCapital story, December 5, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $10m to AccessBank Azerbaijan,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-10m-to-accessbank-azerbaijan/

MicroCapital story, August 9, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $10m to Microfinance Institution AccessBank of Azerbaijan,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-10m-to-microfinance-institution-accessbank-of-azerbaijan/

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

MicroUniverse Profile: European Bank for Reconstruction and Development https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

 

Similar Posts: