FINCA AZERBAIJAN
Status: Completed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FINCA Azerbaijan LLC is the leading non-banking microfinance institution in Azerbaijan, operating in the country since 1998 under limited license from the National Bank of Azerbaijan. FINCA Azerbaijan provides financial services to more than 155,000 active clients through its 65 branches across the country, with a gross loan portfolio of more than US$240 million (December 2014). FINCA Azerbaijan is a subsidiary of FINCA International, a leading international microfinance organization that provides socially responsible financial services to help low-income individuals and communities build assets, create jobs and raise their standard of living. FINCA currently reaches 1.7 million clients through its 23 microfinance subsidiaries in Africa, Eurasia, Latin America, and the Middle East and South Asia. FINCA provides financing to its microfinance subsidiaries through FINCA Microfinance Holding Company LLC, a social investment partnership that includes majority owner FINCA International, as well as IFC, FMO, KfW, responsAbility, Triple Jump and Triodos. For more information on FINCA, visit www.finca.org.
What is our funding objective?
FMO arranged a US$30 million multi-currency syndicated loan facility for FINCA Azerbaijan, with the participation of the Oesterreichische Entwicklungsbank AG (OeEB, the Development Bank of Austria). Both FMO and the OeEB contributed US$15 million to the facility. An additional US$10 million commitment from international commercial investors/asset managers is also expected.
Why do we fund this investment?
This five-year loan facility will support FINCA Azerbaijan in providing its clients with sustainable financing, and thanks to the MFI's extensive branch network, the facility will particularly benefit micro entrepreneurs in rural and remote areas of the country, where the supply of banking services is still limited. The loan will allow FINCA Azerbaijan to finance over 15,000 additional agricultural and rural customers. FMO's loan is denominated in Azeri Manat (USD 15m equivalent), helping FINCA Azerbaijan to sustain its local-currency loan portfolio, reducing currency risk for its clients.
- Website customer/investment
- http://www.fincaazerbaijan.com
- Region
- Europe & Central Asia
- Country
- Azerbaijan
- Sector
- Financial Institutions
- Effective date
- 11/26/2014
- End date
- 1/18/2019
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B