MFBA receives USD 10m Subordinated Loan arranged by Deutsche Bank

On 17 July MFBA received a subordinated loan arranged by Deutsche Bank. The total amount of the loan is USD 10m in two tranches, with the first tranche of USD 5m disbursed today and the second USD 5m will be disbursed by the end of the year. The subordinated loan not only provides additional funds to MFBA for providing loans to small businesses, but also contributes to the capital of MFBA and strengthens the Capital Adequacy of the bank. This will allow MFBA to continue the fast growth of the portfolio.
"The Subordinated Loan from Deutsche Bank is another demonstration of the growing confidence international institutions have in MFBA and our work in supporting the development of the non-oil sector. The rapid growth of our portfolio has been putting pressure on our capital adequacy. The subordinated loan strengthens our capital position and will allow MFBA to continue to meet the demand for financing from our clients" said General Manager, Andrew Pospielovsky.
MFBA's portfolio has already grown by 67% in the first half of 2007 and the bank now provides new financing to around 3,000 businesses every month. In the second quarter of 2007 MFBA attracted a total of $21 mln from international finance institutions for funding its portfolio growth and in May alone received USD 18m. This makes MFBA one of the leading agents for investment into the non-oil sector.
Micro Finance Bank of Azerbaijan is 100% foreign owned by six shareholders: European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank – the German Development Bank of the German Government, and LFS Financial Systems GmbH– a German consulting company, as well as AccessHolding which has recently become a member of the shareholders team. Participation of such organizations in the activity of the bank strengthens the trust of our customers into the reliability of our bank.