Azerbaijan, Baku, Aug. 8 / Trend /
Azerbaijani AccessBank has signed a USD 10 million loan agreement with the European Bank for Reconstruction and Development (EBRD) for five years, AccessBank said on Wednesday.
This senior loan will allow AccessBank to diversify its funding base and provide additional financing to small businesses. The funds involved from EBRD will help AccessBank Azerbaijan in expanding its MSME (micro, small and medium-sized enterprises) lending portfolio in the regions outside of Baku with a particular focus on agricultural lending.
"In addition the provision of longer tenor financing will strengthen AccessBank's balance sheet and business model by improving the diversification and maturity of funding," the report said.
This is the second deal that has been closed with EBRD this year following the USD 15 million transaction concluded between EBRD and AccessBank in April. AccessBank also directed these funds to finance micro and small businesses in the country.
AccessBank was established to provide access to financial services for Azerbaijan's micro and small businesses and low and middle income households. AccessBank is recognized as the most reliable bank in Azerbaijan by Fitch International Ratings ('BB+ Outlook Stable'), and as "The Best Bank in Azerbaijan" by Global Finance (2011) and Euromoney (2012, 2011 and 2010) in their annual awards as well as "The Bank of the Year" by The Banker (2011).
AccessBank is 100% foreign owned by six shareholders, consisting of: the European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank - the Development Bank of the German Government (20% per each), Access Microfinance Holding acting in microfinance field as a strategic investor (16.5%), and LFS Financial Systems GmbH - a German consulting company (3.5%).