MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $25m to Azerbaijan’s AccessBank for Micro-, Small, Medium-Sized Enterprises

The International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to increase economic growth in developing countries, recently announced that it will provide a subordinated loan of USD 25 million to AccessBank, a microfinance bank in Azerbaijan that is associated with Germany’s Access Microfinance Holding AG (AccessHolding), to enable it to serve more micro-, small and medium-sized enterprises (MSMEs). This increased financial support for MSMEs is intended to encourage employment and innovation as well as the development of the non-oil sectors of Azerbaijan, and as a result, “further stimulate the economy in these important market segments,” in the words of Michael Hoffmann, CEO of AccessBank. [1]

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, AccessHolding reports that its affiliates hold total assets of EUR 1.5 billion (USD 1.6 billion), a gross loan portfolio of EUR 1.2 billion (USD 1.3 billion) disbursed to 566,000 active borrowers, EUR 479 million (USD 508 million) in deposits held for 1.1 million depositors and return on assets of 3.79 percent. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. As of 2014, IFC reported in their printed annual financial statement total assets of USD 84.1 billion, net income (loss) of USD 1.48 billion and return on assets of 1.8 percent.

By Hye In Arielle Oh, Research Associate

About AccessBank Azerbaijan

AccessBank was founded in 2002 to provide credit and other 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-percent 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 2015, AccessBank reported total assets of EUR 972 million (USD 1.10 billion), deposits of EUR 282 million (USD 320 million) in 502,000 accounts and a gross loan portfolio of EUR 724 million (USD 821 million) outstanding to 162,000 active borrowers.

About Access Microfinance Holding AG (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 owns stakes in ten MFIs in Brazil, Central Asia and sub-Saharan Africa.

About the International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. As of 2014, IFC reported in their printed annual financial statement total assets of USD 84.1 billion, net income (loss) of USD 1.48 billion and return on assets of 1.8 percent.

Sources and Additional Resources:

[1] International Finance Corporation news article: “IFC Invests in Azerbaijan’s AccessBank to Boost Financing for Smaller Businesses,” http://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/454988499B93ECC585257EA400486ED4?OpenDocument

MicroCapital Universe Profile: “Access Bank, Azerbaijan,” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Bank%2C+Azerbaijan

AccessHolding Microfinance AG: “AccessBank in Azerbaijan,” http://www.accessholding.com/Our_Network/ABA/

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

AccessHolding Microfinance AG: “Mission Statement,” http://www.accessholding.com/About_Us/Mission_Statement/

MicroCapital Universe Profile: “International Finance Corporation (IFC),” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

International Finance Corporation: “Annual Report,” http://www.ifc.org/wps/wcm/connect/CORP_EXT_Content/IFC_External_Corporate_Site/Annual+Report/2014_Online_Report/2014_Printed_Report/

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

Similar Posts: