Azerbaijani TBC Kredit to increase loan portfolio by more than 20% in 2014
Baku, Azerbaijan, May 27
The non-bank credit organization TBC Kredit plans to increase its loan portfolio to $ 50 million by late 2014, the organization said on May 27.
"Financing of business projects and expanding the branch network in Azerbaijan remain a priority," according to a statement.
As of 2013, TBC Kredit increased its volume of loan portfolio by 13 percent compared to late December 2012. As of December 31, 2013, the portfolio volume reached $41.4 million with 4,893 active loans. The portfolio is dominated by business loans - 49 percent, the share of mortgage and consumer loans - 16 percent and 35 percent respectively. The business portfolio consists of micro business loans by almost 54 percent. Their financing started 4.5 years ago.
The volumes of issued consumer and micro-business loans increased compared to the previous year. Thus, the consumer loan portfolio increased by 18.5 percent ($14.4 million as of December 31, 2013, $ 12.2 million as of December 31, 2012), a portfolio of micro business loans - 32 percent ($11.03 million as of December 31, 2013, $ 8.4 million as of December 31, 2012).
"While maintaining the quality of the portfolio, the company increased its indices, established cooperation with new partners, drew long-term borrowings, issued and successfully placed its bonds in the amount of two million manat during this period," according to a statement.
TBC Kredit has been successfully cooperating with international and local financial institutions to draw external borrowing. Thus, TBC Kredit received several tranches totaling $11.8 million in 2013. They were directed to develop business lending in Azerbaijan. Among international partners are MicroVest, responsAbility Social Investments AG, Triple Jump, OPIC (Overseas Private Investment Corporation, USA) and the European Bank for Reconstruction and Development. An agreement on cooperation with the Black Sea Trade and Development Bank (BSTDB) was signed in the middle of last year.
TBC Kredit has been operating in Azerbaijan since 1999. Since December 2007, a 75 percent stake in the organization has belonged to the leading Georgian bank TBC Bank and 25 percent to Enclude, USA (former ShoreBank International, USA).
The official exchange rate is 0.7844 AZN/USD on May 27.
edited by CN