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Azerbaijan : ACCESSBANK secures a $15m loan from BSTDB for SME Sector

June 27, 2014

In a bid to expand lending to the small and medium scale businesses, the Azerbaijani lender AccessBank has inked a loan deal worth US$15 million with the Black Sea Trade and Development Bank (BSTDB).

AccessBank will be able to extend funds to small and medium businesses through the newly secured funds.

The Bank will utilize the facility to financially support projects for upgrading, capacity building, diversifying products and services of industrial, agricultural and manufacturing small- and medium-sized enterprises (SMEs) in Azerbaijan. It will also use the money to meet their needs for working capital.

Commenting on the newly signed loan agreement with the BSTDB, the AccessBank CEO Michael Hoffmann stated, "We strongly welcome the support of our long-term partner BSTDB. The funds will be on-lend to the Bank's SME clients and contribute in particular to the further development of the regional economy in Azerbaijan."

The President of the BSTDB Andrey Kondakov commented, "Strengthened cooperation with AccessBank is contributing to the implementation of the BSTDB strategy in Azerbaijan to promote growth and diversification of the economy through investment and support to the small business development in the non-oil sector."

He has made this observation at the deal signing ritual at the Bank's Annual Meeting in Sofia.

AccessBank s founding shareholders include the BSTDB, as well as EBRD, and IFC in addition to several global investors.

AccessBank s latest facility from the BSTDB to support the SME sector is founded on the productive collaboration involving the two entities which was introduced in 2005.

The bank has so far received US$ 37 million from the BSTDB for SMEs including the new offering of US$15 million.

The BSTDB, an international financial institution with authorized capital of EUR 3.45 billion, delivers supports for economic growth and regional collaboration through granting loans, credit lines, equity and projects guarantees and trade financing across the public and private sectors in its member nations.

The BSTDB jointly with EBRD, IFC, KfW, a Germany-based consulting firm LFS Financial Systems GmbH and AccessHolding has set up AccessBank in 2002.

AccessBank extends loans to the micro and small business entities and operates an extensive branch network in Azerbaijan with an employee fleet of over 2000 people.

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Source: TendersInfo (India)

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