The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently issued a USD 20 million senior loan to AccessBank, an organization founded in 2002 to provide credit and other financial services to smaller businesses and low-income families in Azerbaijan. The loan will be used to provide financing for approximately 6,000 additional micro- and small enterprises (MSEs) in rural parts of the country.
According to Monika Beck, Chairperson of the Board of EFSE, “With its strong focus on micro, small and medium enterprises as well as with its leading market position, AccessBank has proved a reliable partner in reaching out to the EFSE’s target group. Since becoming an EFSE partner lending institution in 2011, AccessBank has consistently and successfully utilized the Fund’s monies to achieve our common goals.”
As of 2014, AccessBank reported to the US-based Microfinance Information Exchange (MIX) total assets of USD 834 million, deposits of USD 279 million in 332,000 accounts and a gross loan portfolio of USD 664 million outstanding to 167,000 active borrowers. AccessBank is one of the members of Access Microfinance Holding, which is based in Germany. As of September 2014, EFSE has an investment portfolio of EUR 854 million (USD 977 million).
By Ananya Tiwari, Research Associate
About European Fund for Southeast Europe (EFSE):
The European Fund for Southeast Europe (EFSE) was established in 2005 by Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a German development bank, with financial support from the German Federal Ministry for Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung) and the European Commission of the EU. EFSE seeks to aid economic development in southeastern Europe and parts of central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of September 2014, EFSE has an investment portfolio of EUR 854 million (USD 977 million). As of 2015, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.
About AccessBank
AccessBank was founded in 2002 to provide credit and financial services to small businesses and low-income families in Azerbaijan. AccessBank is owned by the following six shareholders: the Black Sea Trade and Development bank, a Greece-based financial institution (20-percent ownership); the European Bank for Reconstruction and Development, a London-based multilateral financial institution (20-percent ownership); the International Finance Corporation, the World Bank Group’s private investment arm (20% ownership); Kreditanstalt für Wiederaufbau (KfW), a German development bank (20-percent ownership); Access Microfinance Holding, a German investor in microfinance (16.5-percent ownership) and LFS Financial Systems, a German consulting company that manages Access Microfinance Holding (3.5-percent ownership). As of 2014, AccessBank reported to the US-based Microfinance Information Exchange (MIX) total assets of USD 834 million, deposits of USD 279 million in 332,000 accounts and a gross loan portfolio of USD 664 million outstanding to 167,000 active borrowers
Additional Sources and Resources
[1] AccessBank Press Release, http://www.accessbank.az/en/news/efse_partnership/
MicroCapital, January 20, 2015, European Fund for Southeast Europe (EFSE) Loans $11.6m to UniCredit Bank Serbia for Housing Purchases, Improvements, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-11-6m-to-unicredit-bank-serbia-for-housing-purchases-improvements/
MicroCapital, January 20, 2015, European Fund for Southeast Europe (EFSE) Loans $34.6m to Garanti Leasing for On-lending to Micro-, Small Enterprises in Turkey; Banca Intesa Beograd (BIB) for Agriculture in Serbia, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-34-6m-to-garanti-leasing-for-on-lending-to-micro-small-enterprises-in-turkey-banca-intesa-beograd-bib-for-agricultural-in-serb/x
MicroCapital, January 7, 2015, European Fund for Southeast Europe (EFSE) Loans $8.3m in Local Currency to Patria Credit of Romania, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-8-3m-in-local-currency-to-patria-credit-of-romania/
MicroCapital, January 6, 2015, European Fund for Southeast Europe (EFSE) Loans $8.3 to Agricover Credit of Romania for Agricultural Micro-, Small Businesses, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-8-3-to-agricover-credit-of-romania-for-agricultural-micro-small-businesses/%20
MicroCapital, January 5, 2015, European Fund for Southeast Europe (EFSE) Loans $600k to Macedonian Microfinance Institution (MFI) Horizonti to On-Lend to Small-Scale Farmers, Rural Microentrepreneurs, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-600k-to-macedonian-microfinance-institution-mfi-horizonti-to-on-lend-to-small-scale-farmers-rural-microentrepreneurs/
MicroCapital, January 4, 2015, European Fund for Southeast Europe (EFSE) Loans $30m to Finansbank of Turkey to Support Micro-, Small, Medium-sized Enterprises (MSMEs), https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-30m-to-finansbank-of-turkey-to-support-micro-small-medium-sized-enterprises-msmes/
MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital University Profile: AccessBank, http://www.mixmarket.org/mfi/accessbank-Tajikistan
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