On 11 April 2006 Micro Finance Bank of Azerbaijan (MFBA) has signed a credit contract with the Swiss company BlueOrchard Microfinance Security, in the amount of USD 4 million. MFBA will use these funds for crediting Azeri micro and small enterprises, the MFBA told Trend.
This new loan is financed by a bond issue organized by Blue Orchard and taken by private commercial investors, in the amount of app. USD 120 million. And while today there are close to 10 thousand MFIs in the world, BlueOrchard aims to select only institutions of the highest quality, which is determined by profitability, sustainability, and operational quality. Given this aim, the Fund works with only 22 MFIs and among these MFIs, BlueOrchard has selected MFBA
Micro Finance Bank of Azerbaijan is the leading microfinance provider in Azerbaijan and a commercial bank. To date is has disbursed more than 20,000 loans in an amount of USD 52 million. It offers its clients not only credits, but a full range of financial services
MFBA five shareholders are the international finance institutions European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank (BSTDB), the German state-owned development bank (KfW) and the German consulting firm LFS Financial Systems GmbH (LFS). The Bank is also supported by the European Union.