MICROCAPITAL BRIEF: Raiffeisen Bank Arranges $60m Loan to Microfinance Institution Access Bank of Azerbaijan

Raiffeisen Bank International, an Austria-based parent organization of financial service providers in 15 countries, has arranged a syndicated loan of USD 60 million with participation from 16 banks to AccessBank, a microfinance institution (MFI) in Azerbaijan. The term of the loan is one year at an interest rate of 3.25 percent. AccessBank has not disclosed its plans for the funds.

The 16 banks participating in this deal are: Aka Ausfuhrkredit Gesellschaft mbH (AKA), a German bank specializing in export financing; Banca Transilvania SA, a Romanian commercial bank; Ojsc Bank Zenit, a Russian commercial bank; Burgan Bank SAK, a Kuwaiti commercial bank; Credit Europe Bank NV, a Netherlands-based commercial bank; Sviaz-Bank, a Russian commercial bank; Amsterdam Trade Bank NV, a Russian commercial bank registered in the Netherlands; Baltikums Bank AS, a Latvia-based international private bank; Chang Hwa Commercial Bank Limited (London Branch), a Taiwan-based commercial bank; Eurocity Bank AG, a German bank; KDB Bank Europe Limited, a Hungary-based subsidiary of Korean Development Bank (KDB) of South Korea; Mega International Commercial Bank Company Limited (Amsterdam Branch), a Taiwan-based commercial bank; Misr Bank-Europe GmbH, a bank that operates in Germany and is majority-held by Egypt’s Banque Misr; Šiauli? Bankas AB, a Lithuania-based commercial bank; Banque de Commerce et de Placements SA, a Switzerland-based bank with operations in Luxembourg and the United Arab Emirates; and Oberbank AG, a commercial bank in Austria. The extent of participation by each bank has not been released.

As of 2012, AccessBank reports deposits of USD 240 million, a gross loan portfolio of USD 581 million and total assets of USD 656 million; as of 2014, the bank serves approximately 140,000 clients. Access Microfinance Holding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million) that holds stakes in similar institutions in Tajikistan and four African countries. As of 2013, Raiffeisen Bank reported total assets of EUR 131 billion (USD 180 billion). Raiffeisen Bank is majority-owned by Raiffeisen ZentralBank (RZB) Group, which reported assets of EUR 147 billion (USD 202 billion) as of 2013.

By Meraj Husain, Research Associate

About AccessBank of Azerbaijan

AccessBank 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, an investor in microfinance (16.5% ownership) and LFS Financial Systems, a German consulting company that manages Access Microfinance Holding (3.5% ownership). As of 2012, AccessBank reports deposits of USD 240 million, a gross loan portfolio of USD 581 million and total assets of USD 656 million; as of 2014, the bank serves approximately 140,000 clients.

About Access Microfinance Holding AG

Access Microfinance Holding AG (AccessHolding) is a commercial microfinance holding company that was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and as of December 2012, Access owns a controlling share in six financial institutions. AccessHolding 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 is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of December 2012, AccessHolding has investments in AccesBanque Madagascar (55.2-percent share); AccessBank Azerbaijan (16.5-percent share); AccessBank Tanzania (52.7-percent share); AB Microfinance Bank Nigeria Limited (50.1-percent share); AccessBank Liberia (55.6-percent share); and AccessBank Tajikistan (52-percent share). As of the end of 2012, AccessHolding Group assets were reported at EUR 639 million (USD 838 million).

About Raiffeisen Bank International

Raiffeisen Bank International (RBI) is an Austria-based collection of banks, leasing companies and other financial service providers operating in 15 countries in Central and Eastern Europe. RBI is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB) and the central institution of the Austrian Raiffeisen Banking Group. As of 2013, Raiffeisen Bank reported total assets of EUR 131 billion (USD 180 billion). As of 2013, Raiffeisen ZentralBank (RZB) Group reported assets of EUR 147 billion (USD 202 billion).

Sources and Additional Resources

[1] AccessBank: “AccessBank attracts USD 60 million syndicated loan arranged by Raiffeisen Bank International AG,” http://www.accessbank.az/en/news/Raiffeisen/#contentLeft

MicroCapital, July 29, 2013, “Asian Development Bank (ADB) Loans $50m to AccessBank of Azerbaijan for Micro-, Small, Medium-sized Enterprises in Rural Areas,” https://www.microcapital.org/microcapital-brief-asian-development-bank-adb-loans-50m-to-accessbank-of-azerbaijan-for-micro-small-medium-sized-enterprises-in-rural-areas/

MicroCapital, March 18, 2013, “AccessBank of Azerbaijan Borrows $4.2m from European Bank for Reconstruction and Development (EBRD) for Energy Efficient Remodel of Headquarters,” https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-borrows-4-2m-from-european-bank-for-reconstruction-and-development-ebrd-for-energy-efficient-remodel-of-headquarters/

MicroCapital, February 11, 2013, “European Bank for Reconstruction and Development, Raiffeisen Bank Aval, John Deere Partner to Provide Farming Equipment in the Ukraine,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-raiffeisen-bank-aval-john-deere-partner-to-provide-farming-equipment-in-the-ukraine/

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

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

MicroCapital Universe Profile: Raiffeisen Bank International
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Raiffeisen+Bank+International

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