International Private Fund Provides First Credit in AZN
Baku, Azerbaijan, December, 08 2007 -
On 7 December the Micro Finance Bank of Azerbaijan (MFBA) received a AZN 4.2m loan from the SNS Institutional Microfinance Fund, the Bank reported. This is the first loan from an international private-sector financial institution denominated in Azerbaijan’s local currency, the Manat. As such it marks another historic step in the development of capital markets both for MFBA and Azerbaijan. The funding will be used by MFBA for on-lending to Azeri small business.
The lender is a fund sponsored by SNS Asset Management, part of SNS REAAL, a Netherlands banking and insurance services provider with a total balance sheet of € 83 billion. SNS Asset Management is a leading asset manager in socially responsible investments.
The fund is advised by DWM Asset Management LLC, part of Developing World Markets, a US-based socially responsible investment bank and fund manager.
MFBA General Manager, Dr Andrew Pospielovsky said: "MFBA is proud to be playing a leading role not only in the development of the Azeri economy, but also in the development of the banking sector as a whole. This first loan denominated in Azeri Manat from international private funds demonstrates growing capital market confidence not only in MFBA but the Azeri national currency and economy. We are also proud to be working on another breakthrough deal with DWM, who again demonstrate their willingness to be at the forefront of capital market investment in Azerbaijan.”
Micro Finance Bank of Azerbaijan was established in 2002 to provide financial services to Azeri small business. It is 100% foreign owned by six shareholders: the European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank – the Development Bank of the German Government, and LFS Financial Systems GmbH – a German consulting company, as well as AccessHolding - a strategic investor in microfinance.