MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Loan $4m to AccessBank of Tajikistan for Expansion of Loan Portfolio, Movement Toward Deposit-Taking

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to loan USD 4 million to microfinance institution (MFI) AccessBank Tajikistan to expand the MFI’s loan portfolio, develop a greater variety of credit products and “support competition in the microfinance sector,” according to an IFC press release [1]. Tomasz Telma, a co-founder of AccessBank and current IFC Associate Director for Central Asia and Azerbaijan, says that the investment will help the MFI reach its goal of “becoming a sustainable deposit-taking institution” [1]. IFC has previously invested USD 2 million in AccessBank to support the expansion of microfinance services, as was reported by MicroCapital in March 2010 [2].

AccessBank Tajikistan is a subsidiary of Access Microfinance Holding AG (AccessHolding), a German holding company that has committed capital of approximately EUR 26.4 million (USD 37 million). AccessHolding has also made investments in MFIs in Madagascar, Azerbaijan, Tanzania, Nigeria and Liberia.

As of June 2011, AccessBank Tajikistan does not report data to the US-based microfinance information provider, the Microfinance Information Exchange (MIX).

By Rohan Trivedi, Research Associate

About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.

About AccessBank Tajikistan:
AccessBank Tajikistan is a closed joint stock company with a full banking license that began operations in April 2010. As of June 2011, the bank offers financial services to micro- and small enterprises through four branches. AccessBank’s shareholders include the International Finance Corporation (IFC), the private-investment arm of the World Bank; the European Bank for Reconstruction and Development (EBRD), a financial institution owned by 61 countries and two intergovernmental institutions; KfW Bankengruppe, a German development bank; and AccessHolding, a commercial microfinance holding company based in Germany. AccessBank Tajikistan does not report data to the US-based microfinance information provider, the Microfinance Information Exchange (MIX).

About Access Microfinance Holding AG (AccessHolding):
Access Microfinance Holding AG (AccessHolding) was established in 2006 by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop these investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding concentrates on start-up and early-stage MFIs. It establishes new MFIs together with other partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services including deposits. AccessHolding is a joint stock company with a committed capital of EUR 26.4 million (USD 37 million). As of June 2011, AccessHolding has made 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).

Sources and Additional Resources:

[1] International Finance Corporation (IFC) Press Release: “IFC Supports AccessBank Tajikistan’s Microfinance Lending, Helping Create Jobs and Prosperity”, http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/9CB6FA0416A9D7A8852578A7003A9F27?OpenDocument

MicroCapital.org story, April 26, 2011: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Assist Microfinance Institution (MFI) IMON International of Tajikistan in Financing, Leasing Agricultural Equipment”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-assist-microfinance-institution-mfi-imon-international-of-tajikistan-in-financing-leasing-agricultural-equipment/

MicroCapital.org story, March 30, 2010: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $2m in AccessBank Tajikistan to Help Expand Microfinance Services”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-2m-in-accessbank-tajikistan-to-help-expand-microfinance-programs/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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

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

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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