Publish Date : 28-Nov-2014
Today, FINCA Azerbaijan announced that it has reached agreement on a USD 30 million multi-currency syndicated loan facility arranged by the Netherlands Development Finance Company (FMO) with participation of the Oesterreichische Entwicklungsbank AG (OeEB, the Development Bank of Austria), with each institution contributing USD 15 million. An additional USD 10 million commitment from international commercial investors/asset managers is also expected. This five-year loan facility will support FINCA Azerbaijan in providing its clients with sustainable financing, and thanks to its extensive branch network, the facility will particularly benefit micro entrepreneurs in rural and remote areas, 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. The multi-currency facility is partly in Azeri Manat (USD 15m equivalent), helping FINCA Azerbaijan to sustain its local-currency loan portfolio, reducing currency risk for its clients.
FMO’s Chief Investment Officer, Linda Broekhuizen, said: “By supporting the non-oil related businesses in Azerbaijan the economy will grow, bringing wealth to a larger part of the population. We are therefore very pleased to finance FINCA Azerbaijan, an institution reaching out to remote areas and serving more than 150,000 micro-clients.” “For many Azerbaijani people, micro businesses form a significant part of household income. By partnering with FINCA Azerbaijan, OeEB can increase the availability of funding for Azeri micro and small businesses and thereby support the creation of jobs,” said Andrea Hagmann, Member of the Executive Board of OeEB.
Tim Tarrant, Chief Executive Officer of FINCA Azerbaijan, thanking FMO and OeEB, said: “This is the first funding we have received directly from FMO and OeEB, and the first syndication for a FINCA subsidiary. This key transaction will allow us to expand the financing of small business, especially in the agricultural sector and across the regions of Azerbaijan.” ”This landmark syndication is particularly strategic for FINCA Azerbaijan, as it marks the start of a strategic partnership with two international financial institutions that are very active in supporting microfinance,” remarked Marco de Natale, Chief Financial Officer of FINCA Azerbaijan. “We look forward to cooperating with FMO and OeEB on many initiatives in the field of responsible banking, helping to further diversify the Azeri economy”.
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