EBRD endorsed a $40 million syndicated loan for Microfinance Bank of Azerbaijan
Baku, Azerbaijan, June, 19 2008 -
The European Bank of Reconstruction & Development (EBRD) has completed preparing a syndicated loan (A/B Loan) project on the Microfinance Bank of Azerbaijan.
The EBRD informs that the Board of Directors approved the loan on June 17, 2008.
“Currently we expect loan agreement signing between the both banks,” it was reported.
AB/loan in the amount of $40 million organized for MFBA will be used for small and medium-size business. EBRD will retain up to USD 10 million on its own account and up to USD 30 million under the B-Loan will be offered by the participating commercial banks. Initially EBRD planned to allocate $5 million with raising $15 million and then increased the amount up to $10 million due to own finance and $20 million, and here is new loan increase.
MFBA was opened in Baku on 29 October 2002. Its shareholders are EBRD, International Finance Corporation, Black Sea Trade & Development Bank, German bank KfW, German consulting firm LFS Financial Systems GmbH and strategic micro-financing investor AccessHolding.
In 2007 MFBA total assets grew by 141% and by the end of December reached $133 million. The Bank links such growth with raising of large number of credit lines from different financial institutions and investors for more than $60 million.