MICROCAPITAL BRIEF: European Fund for Southeast Europe Loans $23m to AccessBank of Azerbaijan for Rural MSMEs

The European Fund for Southeast Europe (EFSE), a Luxembourg-based investor in the development of local financial sectors in Southeast Europe and parts of Central Asia, recently informed MicroCapital that it has loaned EUR 20 million (USD 23 million) to AccessBank, an organization founded in 2002 to provide credit and other financial services to Azerbaijan’s smaller businesses and low-income families. The funds are to be on-lent to micro-, small and medium-sized enterprises in rural areas of the country.

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.

As of 2014, EFSE reported total assets of EUR 854 million (USD 967 million), a sub-loan portfolio of EUR 764 million (USD 865 million) and profit of EUR 1.8 million (USD 2 million). As of September 2014, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.

By Jacob Ferguson, Research Associate

About European Fund for Southeast Europe (EFSE)

The Luxembourg-based European Fund for Southeast Europe (EFSE) focuses on the development of local financial sectors in Southeast Europe and parts of Central Asia. EFSE provides “long-term” funding for small and microenterprises as well as private households via its partner institutions. EFSE also supports its investments though the EFSE Development Facility, which provides technical assistance, consulting and training services supporting capacity building within its partner institutions. EFSE was established in 2005 by Kreditanstalt für Wiederaufbau (which means Reconstruction Credit Institute) with financial support from the German Federal Ministry for Economic Cooperation and Development (which is also known by its German acronym BMZ) and the EU’s European Commission. The fund 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. EFSE operates in 16 countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey. As of 2014, EFSE reported total assets of EUR 854 million (USD 967 million), a sub-loan portfolio of EUR 764 million (USD 865 million) and profit of EUR 1.8 million (USD 2 million). As of September 2014, 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 Azerbaijan was founded in 2002 to provide credit and financial services to Azerbaijan’s small businesses and low-income families. AccessBank is owned by the following six shareholders: the Black Sea Trade and Development Bank, a Greece-based financial institution (20% ownership); the European Bank for Reconstruction and Development, a London-based multilateral financial institution (20% ownership); the International Finance Corporation, the World Bank Group’s private investment arm (20% ownership); Kreditanstalt für Wiederaufbau (KfW), a German development bank (20% ownership); Access Microfinance Holding, a German investor in microfinance (16.5% ownership) and LFS Financial Systems, a German consulting company that manages Access Microfinance Holding (3.5% 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.

Sources and Additional Resources

[1] EFSE: EFSE and AccessBank expand existing partnership to reach out to rural MSMEs in Azerbaijan

MicroCapital University Profile: European Fund for Southeast Europe (EFSE)

MicroCapital University Profile: AccessBank

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

 

 

 

 

 

Similar Posts: