AccessBank Azerbaijan

complete

Translated version of this PSD: Azerbaijani 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. The transaction has the following transition impact objectives: 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. 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. 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). US$ 25 million. 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. None. Renata Iksar, iksarr@ebrd.com Sven Friebe: friebes@ebrd.com