AccessBank Azerbaijan

Location:

Azerbaijan

Project number:

43247

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

13 Dec 2011

Status:

Complete

PSD disclosed:

11 Nov 2011

Translated version of this PSD: Azerbaijani

Project Description

The EBRD is considering making available a senior loan of up to US$ 25 million to Azerbaijan’s Accessbank to increase access to finance for local micro, small and medium-sized enterprises (MSMEs).

The transaction would stimulate the development and support the expansion of such lending in the country, particularly outside the Baku region.

It would also provide longer tenor financing, which has become increasingly scarce as a consequence of the global financial crisis and the sovereign debt crisis in the Eurozone.

The transaction would thereby strengthen Accessbank’s balance sheet and business model by improving the diversification and maturity of its funding.

Transition Impact

The transaction has the following transition impact objectives:

  • market expansion, by increasing financial intermediation and access to finance for MSMEs
  • the further growth of agricultural lending products
  • the transfer of skills

As the only commercial bank in Azerbaijan focused entirely on providing financial services to MSMEs, Accessbank has a significant demonstration effect on other local banks.

Through its regional presence outside Baku, the bank will be able to reach MSMEs in regions where access to finance is more limited.

Accessbank has also piloted lending to small farmers and expects to roll out its agricultural lending products to all of its regional branches shortly.

Additionally, Accessbank is developing a sensitivity analysis for sub-borrowers in FX without sufficient FX income. The goal is demonstrate their capacity to repay under different stress scenarios and disclose the impact of a devaluation on repayments.

The Client

Accessbank Azerbaijan, the leading provider of financial services to MSMEs in Azerbaijan, the second most profitable private Azeri bank, and the sixth largest by total loan portfolio.

EBRD Finance

MSME senior loan of up to US$ 25 million with a tenor of up to five years (two years grace period) in two tranches (i) US$ 15 million and (ii) US$ 10 million (uncommitted).

Project Cost

US$ 25 million.

Environmental Impact

Categorised FI under EBRD's Environmental and Social Policy. Accessbank will be required to comply with EBRD's Performance Requirements for FIs (specifically PR 2 and 9) and should implement the respective Environmental and Social Procedures as per e-Manual.

Technical Cooperation

None.

Company Contact

Renata Iksar, iksarr@ebrd.com
Sven Friebe: friebes@ebrd.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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Email: projectenquiries@ebrd.com

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