AccessBank Azerbaijan Proyect

The EBRD is considering making available a senior loan of up to US$ 25 million to Azerbaijan’s Accessbank to increase access to finance for local micro, small and medium-sized enterprises (MSMEs). The transaction would stimulate the development and support the expansion of such lending in the country, particularly outside the Baku region. It would also provide longer tenor financing, which has become increasingly scarce as a consequence of the global financial crisis and the sovereign debt crisis in the Eurozone. The transaction would thereby strengthen Accessbank’s balance sheet and business model by improving the diversification and maturity of its funding.

Transition Impact

The transaction has the following transition impact objectives:

• market expansion, by increasing financial intermediation and access to finance for MSMEs
• the further growth of agricultural lending products
• the transfer of skills

As the only commercial bank in Azerbaijan focused entirely on providing financial services to MSMEs, Accessbank has a significant demonstration effect on other local banks.

Through its regional presence outside Baku, the bank will be able to reach MSMEs in regions where access to finance is more limited.

Accessbank has also piloted lending to small farmers and expects to roll out its agricultural lending products to all of its regional branches shortly.

Additionally, Accessbank is developing a sensitivity analysis for sub-borrowers in FX without sufficient FX income. The goal is demonstrate their capacity to repay under different stress scenarios and disclose the impact of a devaluation on repayments.

The Client

Accessbank Azerbaijan, the leading provider of financial services to MSMEs in Azerbaijan, the second most profitable private Azeri bank, and the sixth largest by total loan portfolio.

EBRD Finance

MSME senior loan of up to US$ 25 million with a tenor of up to five years (two years grace period) in two tranches (i) US$ 15 million and (ii) US$ 10 million (uncommitted).

Project Cost

US$ 25 million.

Environmental Impact

Categorised FI under EBRD's Environmental and Social Policy. Accessbank will be required to comply with EBRD's Performance Requirements for FIs (specifically PR 2 and 9) and should implement the respective Environmental and Social Procedures as per e-Manual.

Technical Cooperation

None.

Company Contact

Renata Iksar, iksarr@ebrd.com
Sven Friebe: friebes@ebrd.com

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

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Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 11 November 2011