Original disclosure @ ADB website
Updated in EWS Jul 9, 2020
Disclosed by Bank May 13, 2015
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According to ADB documents, ADB has supported the development of private finance in Azerbaijan since 2005 with interventions to build up banks that finance micro, small, and medium-sized enterprises (MSMEs). Initially, this support largely benefited banks and enterprises centered in the capital. To support increased access to finance in secondary towns and rural regions, ADB provided in 2013 a loan to ABA who expanded its regional footprint through branch openings and support to farmers and small trade and service businesses. However, an enhanced focus is needed to advance the outreach of custom-suited financial products for agriculture through sound financial institutions and, especially in the short term, to respond to the adverse devaluation impact.
The proposed ADB assistance entails two direct senior, unsecured loan facilities for (i) ABA of up to $75 million (or AZN equivalent) with a maximum 7-year tenor, and (ii) FIA of up to $25 million comprising, of an A-loan of up to $20 million (or AZN equivalent) with a maximum 6-year tenor, and a B-loan of up to $5 million with a 4-year tenor to be funded by participating commercial banks.
B-Loan: USD 5.00 million (Proposed)
Loan: USD 20.00 million (Approved)
Project Officer: Flegler, Paul Robert
Private Sector Operations Department
No contact information provided at the time of disclosure.
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