MICROCAPITAL BRIEF: Asian Development Bank (ADB) Loans $50m to AccessBank of Azerbaijan for Micro-, Small, Medium-sized Enterprises in Rural Areas

AccessBank, an Azerbaijani for-profit microfinance institution (MFI), recently notified MicroCapital that the Asian Development Bank (ADB), a multilateral finance institution based in the Philippines, will provide a USD 50 million five-year senior loan facility to AccessBank. The loan is intended to boost financial inclusion in rural areas of Azerbaijan and to support micro-, small and medium-sized enterprises (MSMEs) including agricultural businesses and farmers. The transaction is the largest bilateral refinancing facility provided by an international financial institution to AccessBank [1]. Further information on the loan is unavailable.

As of March 2013, AccessBank reported total assets of USD 704 million, a gross loan portfolio of USD 584 million and 133,000 active borrowers. AccessBank reported USD 241 million in total deposits from 173,000 active depositors, return on assets (ROA) of 3.67 percent and return on equity (ROE) of 17.10 percent in December 2012. AccessHolding, a German joint stock company, holds a 16.5 percent share in AccessBank Azerbaijan as of March 2012. AccessHolding also has stakes in microfinance institutions in Tajikistan and four African countries.

ADB has 48 member countries in Asia and 19 in other parts of the world. For the year 2011, ADB reported outstanding loans of USD 78.1 billion and total approved equity investments of USD 239 million.

By Jennifer Young, 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) (which holds stakes of 20 percent each); Access Microfinance Holding, a German microfinance investor (with 16.53 percent of the firms shares) and LFS Financial Systems, a German consulting company (with a 3.47 percent stake). As of March 2013, AccessBank reported total assets of USD 704 million, a gross loan portfolio of USD 584 million and 133,000 active borrowers and. AccessBank reported USD 241 million in total deposits from 173,000 active depositors, return on assets (ROA) of 3.67 percent and return on equity (ROE) of 17.10 percent in December 2012.

About AccessHolding
Access Microfinance Holding AG (AccessHolding) was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop its investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding establishes new MFIs together with external partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services such as deposits. AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of March 2012, AccessHolding has investments in AccesBanque Madagascar (39.2 percent share); AccessBank Azerbaijan (16.5 percent share); AccessBank Tanzania (42.9 percent share); AB Microfinance Bank Nigeria Limited (50.1 percent share); AccessBank Liberia (52 percent share); and AccessBank Tajikistan (52 percent share).

About Asian Development Bank
Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a development finance institution that consists of sixty-seven members, of which forty-eight are located in the region. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants, equity investments and guarantees to private companies in member countries in the region. For the year 2011, ADB reported outstanding loans of USD 78.1 billion and total approved equity investments of USD 239 million.

Sources and Additional Resources

Information provided to MicroCapital by AccessBank.

MicroCapital Story, June 25, 2013, “MICROCAPITAL BRIEF: AccessBank of Azerbaijan Receives $60m Syndicated Loan from FMO, OeEb, PROPARCO,” https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-receives-60m-syndicated-loan-from-fmo-oeeb-proparco/

MicroCapital Story, May 29, 2013, “MICROCAPITAL BRIEF: Azerbaijan Microfinance Association Considers Credit Bureau for Microlenders,” https://www.microcapital.org/microcapital-brief-azerbaijan-microfinance-association-considers-credit-bureau-for-microlenders/

MicroCapital Story, March 18, 2013, “MICROCAPITAL BRIEF: AccessBank of Azerbaijan Borrows $4.2m from European Bank for Reconstruction and Development (EBRD) for Energy Efficient Remodel of Headquarters,” https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-borrows-4-2m-from-european-bank-for-reconstruction-and-development-ebrd-for-energy-efficient-remodel-of-headquarters/

MicroCapital Story, March 13, 2013, “MICROCAPITAL BRIEF: Asian Development Bank, Standard Chartered Bank Commit $150m to Microfinance in Asia,” https://www.microcapital.org/microcapital-brief-asian-development-bank-standard-chartered-bank-commit-150m-to-microfinance-in-asia/

MicroCapital Story, October 2, 2012, “MICROCAPITAL BRIEF: Asian Development Bank Invests $40m in Vietnam’s Microfinance Sector,” https://www.microcapital.org/microcapital-brief-asian-development-bank-invests-40m-in-vietnams-microfinance-sector/

MicroCapital Story, August 29, 2012, “MICROCAPITAL BRIEF: Asian Development Bank, IFMR Capital to Guarantee $27m in Loans from Ratnakar Bank to Microfinance Insitution in India,” https://www.microcapital.org/microcapital-brief-asian-development-bank-ifmr-capital-ratnakar-bank-provide-partial-credit-guarantee-for-loans-to-microfinance-institutions-in-india/

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

MicroCapital Universe Profile: AccessHolding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Microfinance+Holding+AG+%28AccessHolding%29

MicroCapital Universe Profile: Asian Development Bank (ADB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Development+Bank+%28ADB%29

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