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Access Bank SME I

Azerbaijan | Financial Institutions

Identification Code:: OP/05/0486
Total Operation Cost:: — USD
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

3.000.000 USD – 30 Jul 2005
: BSTDB Signed Amount – Signed Date

3.000.000 USD – 19 Aug 2005
: Status:
Completed
Description and Purpose of the Operation:: The Facility is used by Access Bank exclusively for the purpose of financing sub-loans to eligible micro, small and medium sized companies in Azerbaijan.
Countries of Operation:: Azerbaijan (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Access Bank (former Micro Finance Bank of Azerbaijan-MFBA) is a rapidly developing microfinance institution, and succeeded in less than three years since its establishment in October 2002 to build a solid reputation in the Azeri banking system. BSTDB is a shareholder of Access Bank (former "MFBA"), with an equity stake of 20%. Other Access Bank shareholders are: IFC (20%), KfW (20%), EBRD (20%), Access Holding (19.53%) and LFS (the management company of MFBA) (3.47%).
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The SME Loan Facility will enhance the financing options for micro, small and medium-sized companies in Azerbaijan and complement BSTDB's Trade Finance program in Azerbaijan. Moreover, BSTDB will support one of its existing associates by providing access to increased funding to finance Access bank’s growing loan portfolio.
Environmental Classification and Impact:: SME lending activities are usually associated with such environmental risks as noncompliance of SME's with environmental and safety legislation and standards, inappropriate site management (waste disposal, oil and chemical spillages, untreated effluents from washing facilities), and the resulting liabilities for damages to human health, property and the environment. By virtue of its shareholding in the bank, BSTDB has already enforced compliance with its environmental policies. In addition, environmental policies pursued by Access Bank comply with the requirements of other IFIs, such as the EBRD, the IFC and KFW, as well as domestic legal requirements. By means of legal documentation for the Facility, Access Bank will be further required to follow the BSTDB and the Republic of Azerbaijan standards and norms with respect to environmental protection and human health and safety.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org