MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), Taiwan International Cooperation and Development Fund (TaiwanICDF) Lend $3.5m to TBC Kredit of Azerbaijan for Micro-, Small, Medium-Sized Enterprises

The UK-based European Bank for Reconstruction and Development (EBRD) recently reported that it will lend USD 2.5 million to Tbilisi Business Centre (TBC) Kredit LLC, a microfinance institution (MFI) based in Azerbaijan, to support on-lending micro-, small and medium-sized enterprises (MSMEs) in Azerbaijan. In addition, the Taiwan International Cooperation and Development Fund (TaiwanICDF), which is financed by the Taiwanese government, will lend USD 1 million for on-lending to MSMEs through the EBRD-managed Financial Intermediary Investment Special Fund. The combined USD 3.5 million loan will aim to aid the MFI in expanding its loan portfolio, increase funding to entrepreneurs and local businesses and strengthen financial intermediation in the private sector. Further information has not yet been released.

As of 2012, TBC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 37.7 million, a gross loan portfolio of USD 36.8 million, return on assets (ROA) of 3.58 percent, return on equity (ROE) of 9.6 percent and approximately 3,830 borrowers. In 2012, EBRD invested a total of USD 109 million in 16 private sector projects in Azerbaijan. EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries in 2012.

By Adrija Vaiciulionis, Research Assistant

About Tbilisi Business Centre (TBC) Kredit LLC:
Tbilisi Business Centre (TBC) Kredit LLC is a non-banking microfinance organization based in Azerbaijan. It aims to enable small and medium-sized enterprises to improve their competitiveness as well as improve access to financial products for middle-income individuals. As of 2012, TBC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 37.7 million, a gross loan portfolio of USD 36.8 million, return on assets (ROA) of 3.58 percent, return on equity (ROE) of 9.6 percent and approximately 3,830 borrowers. TBC is owned by ShoreBank International, a member of ShoreBank Group, USA and by TBC Bank, a Georgian Bank.

About European Bank for Reconstruction and Development:
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. 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 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

About Taiwan International Cooperation and Development Fund:
The Taiwan International Cooperation and Development Fund (TaiwanICDF) is the principal body overseeing Taiwan’s overseas development program. TaiwanICDF aims to promote economic development, social progress and the welfare of people around the world. As of December 31, 2012, TaiwanICDF reported total assets of TWD 16 billion (USD 535 million). TaiwanICDF has conducted projects in 53 countries since its inception in 1996.

Sources and Additional Resources:

Press Office, “EBRD Supports Financing to Micro, Small and Medium Enterprises in Azerbaijan,” European Bank for Reconstruction and Development, August 26, 2013,
http://www.ebrd.com/pages/news/press/2013/130823.shtml

MicroCapital article, October, 24, 2011, “MICROCAPITAL BRIEF: reposonAbility Invests $5.5m in Microfinance Institutions TBC Kredit of Azerbaijan, Kazmicrofinance of Kazakhstan; Microfinance Investment Vehicle ACCION Investments in Microfinance,”http://www.microcapital.org/microcapital-brief-responsability-invests-5-5m-in-microfinance-institutions-tbc-kredit-of-azerbaijan-kazmicrofinance-of-kazakhstan-microfinance-investment-vehicle-accion-investments-in-microfinanc/

MicroCapital article, June, 30, 2010, “MICRCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Syndicates $185m Debt Facility for Turkey, Primarily for Microfinance, SMEs,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-syndicates-185m-debt-facility-for-turkey-primarily-for-microfinance-smes/

MicroCapital Universe Profile: TBC Kredit LLC (TBC)
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=TBC+Kredit

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

MicroCapital Universe Profile: International Corporation and Development Fund (TaiwanICDF)
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Cooperation+and+Development+Fund+(TaiwanICDF)

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