Azerbaijan, Baku, Nov. 14 / Trend , N.Ismayilova /
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 EBRD reported.
"The transaction would stimulate the development and support the expansion of such lending in the country, particularly outside the Baku region," the report reads.
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.
MSME senior loan of up to $ 25 million with a tenor of up to five years (two years grace period) in two tranches $ 15 million and $ 10 million (uncommitted).
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," the report reads.
AccessBank's mission is to provide access to financial services for Azerbaijan's micro and small businesses and low- and middle-income households. AccessBank has been recognized by the International Fitch Rating Agency as the most reliable bank in Azerbaijan among private banks (BB+), and AccessBank was named "Best Bank in Azerbaijan" by both Global Finance (2011) and Euromoney (2010 and 2011) magazines in their annual awards.
AccessBank is 100 percent foreign owned by six shareholders, consisting of: the European Bank of Reconstruction and Development (EBRD), the International Finance Corporation (IFC), BSTDB, KfW (20 percent each), Access Microfinance Holding (16.5 percent), and LFS Financial Systems GmbH - a German consulting company (3.5 percent).