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Financed ProjectsAccess Bank SME 5

Identification Code:
OP/16/0017
Total Operation Cost:
17.000.000
Maturity:
36 months
Operation Status:
BSTDB Approved Amount
17.000.000 USD
Approval Date
11 Jun 2016
BSTDB Signed Amount
17.000.000 USD
Signed Date
01 Jul 2016
Status:
Completed
Description and Purpose of the Operation:
Access Bank SME 5
Countries of Operation:
Azerbaijan (100,00 %)
Financial Product:
SME's
Sector:
Financial Institutions
Domain:
Private
Borrower/Client:
5th SME Loan Facility to AccessBank, Azerbaijan
Co-Financiers/Participants:
N/A
Guarantors/Sponsors:
N/A
Developmental and Regional Cooperation Impact:
The operation involves a loan for on-lending to small and medium sized enterprises (SMEs) that is expected to have modest but favorable economic benefits for the Azerbaijani economy. The most relevant of these is the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly modest but positive. Other BSTDB countries are important trade partners for Azerbaijan, so to the extent benefiting SMEs engage in export activities, there will be regional cooperation benefits. The operation is consistent with sector and operation priorities outlined in BSTDB's Medium Term Strategy and Business Plan 2015-18 and the Country Strategy for Azerbaijan 2015-2018.
Environmental Classification and Impact (summary):
AccessBank is an existing Borrower of the Bank and its environmental and social (E&S) performance during the course of the previous loans has been assessed as satisfactory. The Borrower has developed and implemented a comprehensive E&S management system consisting of the E&S Policy, E&S Risk Management Plan, E&S Exclusion List, as well as specific requirements to ensure compliance with EBRD, IFC and ADB's E&S standards towards Financial Intermediaries. The E&S management system is well-integrated in the portfolio management and is applied systematically to the credit cycle. At the pre-approval stage the loan officers check whether the loan application is in line with the internal E&S Exclusion List, and depending on sector it is automatically assigned one of the E&S risk categories e.g. low, medium, or high. Applications screened as medium to high E&S risk, and amounting over 30,000 USD are subject to internal E&S assessment. This is carried out by the E&S officers, or outsourced to expert consulting firms in case of complex E&S operations. The Credit Committee decisions incorporate also E&S requirements, which are translated as terms and conditions of financing in the legal documentation. These normally include compliance with national environmental, labor, health and safety legislation, the E&S Exclusion List, as well as any specific requirements applicable to the loan. Transactions of medium and high E&S risks are regularly monitored and audited. Overall, the existing E&S management system of AccessBank is considered appropriate to ensure compliance of its activities with national and international E&S requirements. The portfolio analysis of recent years shows that the Borrower is engaged primarily in sectors of low to medium E&S risks, such as trade and services (mostly low), manufacturing, and agribusiness (low to medium). The loans of low E&S risk category amount at around 84% of the portfolio, and the medium risk ones at around 15%. The loans associated with high E&S risk, such as trading in oil products and mining (mostly stone extraction) account for less than 1% of the portfolio. No loans were extended for activities and products stipulated in the internal E&S Exclusion List (compatible with the exclusion list of BSTDB).
Operation Leader:
Financial Institutions I
E-mail:
fi1@bstdb.org
As of 29 Feb 2024