Azerbaijan, Baku / corr Trend I.Khalilova / The Micro Finance Bank of Azerbaijan (MFBA) received an USD 8 million loan from BlueOrchard Finance for a term of five years, the bank announced.
BlueOrchard Finance SA is a Swiss-based asset management company specialized in microfinance. The funds will be used by MFBA to provide further loans to support the growth of Azeri micro and small businesses. This is the largest single loan yet received by MFBA from any organization.
The funds for this loan come from an USD 108 million collateralized debt obligation structured and distributed by investment bank Morgan Stanley. It is originated and sponsored by BlueOrchard Finance for the financing of microfinance institutions. This collateralized debt obligation is rated by Standard
"After M-CRIL rating agency awarded an Alpha rating to MFBA, international financial institutions have more confidence in MFBA and this latest facility is another demonstration of the confidence international organizations have in MFBA and our work in supporting the development of micro and small enterprises in Azerbaijan", said the General Manger of MFBA, Dr. Andrew Pospielovsky .
In total MFBA has now attracted over USD 60 million in loans from international financial institutions for the development of micro and small enterprises in Azerbaijan.
In total MFBA has now attracted over USD 60 million in loans from international financial institutions for the development of micro and small enterprises in Azerbaijan.
MFBA's credit portfolio now exceeds USD 72 million with more than 19,000 clients and an average loan size of around USD 3,000. Since its opening almost four years ago, the bank has extended more than 29,000 loans for over USD 170 million.
MFBA is owned by six international organizations, including the BSTDB, the European Bank for Reconstruction and Development, the International Finance Corporation, KFW Development Bank LFS Financial Systems and Access Microfinance Holding.