Improve Financial Service Outreach for Agriculture - Finca Azerbaijan (ADB-49137-001)

Countries
  • Azerbaijan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 22, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Finca Azerbaijan
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Dec 28, 2017

Disclosed by Bank May 13, 2015


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Project Description
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.
Investment Description
  • Asian Development Bank (ADB)
B-Loan: USD 5.00 million (Proposed) 7747/3254 Loan: USD 20.00 million (Approved)
Contact Information
Project Officer: Flegler, Paul Robert Private Sector Operations Department No contact information provided at the time of disclosure. ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.