AccessBank, Azerbaijan
SIFEM investee
AccessBank
SIFEM investment in AccessBank
USD 6.0 million (senior loan)
SIFEM extended a USD 6.0 million senior loan to AccessBank in Azerbaijan in 2007. The purpose of SIFEM’s loan was to grow AccessBank’s micro, small and medium enterprise (MSMEs) lending, and expand its agricultural lending product, with 50% of SIFEM’s funds targeted to develop AccessBank’s agriculture lending activities.
AccessBank was founded in 2002 as a greenfield bank with the aim of becoming the leading provider of financial services to privately owned MSMEs in Azerbaijan. The bank operates under a full banking license from the Central Bank of the Republic of Azerbaijan and has a strong shareholder base of development finance institutions such as the International Finance Corporation, the European Bank for Reconstruction and Development and KfW.
AccessBank has maintained double-digit year-on-year growth despite the ongoing stress of the global economic downturn in 2008-2009, and at the same time has managed to keep its loan portfolio healthy with no significant increases in non-performing loans. AccessBank continues to be a leader in MSME finance in Azerbaijan, garnering recognition from bodies such as CGAP for its commitment to transparency and accountability, and good practices in client protection and avoidance of over-indebtedness. In 2009 the bank had 960 employees, and used the SIFEM facility to lend 2,080 loans.
In 2008 a social performance impact survey was conducted by the Azerbajan Micro-finance Association. In this survey AccessBank was highlighted as an institution whose clients showed above average positive improvements in areas such as household income, poverty reduction, and higher spending on discretionary items such as healthcare and education. Long-term clients of AccessBank reported an income difference of 89% higher from new clients versus the industry difference of 35%. Moreover, AccessBank’s long-term clients spent 336% more on education compared to new clients, versus 78% more of the industry average. Likewise expenditure on healthcare fell more for AccessBank’s long-term clients (33%) than for the industry (12%), reflecting reduced healthcare needs from increased education and improved living conditions. AccessBank’s clients also invested more in their businesses than the industry average, and despite receiving larger than average loans from AccessBank, repaid their loans with business income, thus showing that there was not an overburdening with debt.
AccessBank
SIFEM investment in AccessBank
USD 6.0 million (senior loan)
SIFEM extended a USD 6.0 million senior loan to AccessBank in Azerbaijan in 2007. The purpose of SIFEM’s loan was to grow AccessBank’s micro, small and medium enterprise (MSMEs) lending, and expand its agricultural lending product, with 50% of SIFEM’s funds targeted to develop AccessBank’s agriculture lending activities.
AccessBank was founded in 2002 as a greenfield bank with the aim of becoming the leading provider of financial services to privately owned MSMEs in Azerbaijan. The bank operates under a full banking license from the Central Bank of the Republic of Azerbaijan and has a strong shareholder base of development finance institutions such as the International Finance Corporation, the European Bank for Reconstruction and Development and KfW.
AccessBank has maintained double-digit year-on-year growth despite the ongoing stress of the global economic downturn in 2008-2009, and at the same time has managed to keep its loan portfolio healthy with no significant increases in non-performing loans. AccessBank continues to be a leader in MSME finance in Azerbaijan, garnering recognition from bodies such as CGAP for its commitment to transparency and accountability, and good practices in client protection and avoidance of over-indebtedness. In 2009 the bank had 960 employees, and used the SIFEM facility to lend 2,080 loans.
In 2008 a social performance impact survey was conducted by the Azerbajan Micro-finance Association. In this survey AccessBank was highlighted as an institution whose clients showed above average positive improvements in areas such as household income, poverty reduction, and higher spending on discretionary items such as healthcare and education. Long-term clients of AccessBank reported an income difference of 89% higher from new clients versus the industry difference of 35%. Moreover, AccessBank’s long-term clients spent 336% more on education compared to new clients, versus 78% more of the industry average. Likewise expenditure on healthcare fell more for AccessBank’s long-term clients (33%) than for the industry (12%), reflecting reduced healthcare needs from increased education and improved living conditions. AccessBank’s clients also invested more in their businesses than the industry average, and despite receiving larger than average loans from AccessBank, repaid their loans with business income, thus showing that there was not an overburdening with debt.