Anar Hasanov, the Chairman of the Management Board of the Bank, announced today the conclusion of the capital increase at AccessBank. Reviewing the process, Mr. Hasanov noted that on 15 November 2018, the Bank, current shareholders, and lenders signed an Agreement to strengthen AccessBank`s capital position. In close collaboration with the Financial Markets Supervisory Authority, the bank successfully concluded the AZN 118.5m capital increase on 28 February 2019 comprising the emission of new shares to new shareholders and the International Finance Corporation (IFC), a founding shareholder of AccessBank, as well as the redistribution of existing shares to the new shareholders.
The new shareholders are the Asian Development Bank, the European Union’s European Investment Bank, the Dutch Development Bank (FMO), the Austrian Development Bank, the development financial institution of the Swiss Confederation SIFEM AG, and European investment funds managed by responsAbility Investments, EFSE, Symbiotics SICAV and GGF.
Welcoming the new shareholders, Anar Hasanov stated that: “AccessBank is not just being strengthened with additional capital, but also by the entry of new international shareholders, representing the development arms of the European Union, Switzerland, Austria, the Netherlands, and all the states who are members of the Asian Development Bank as well as private sector investors from Europe.”
According to Anar Hasanov, after directing AZN 118.5m to the increase of the Bank`s authorised capital, the shareholder capital will reach AZN 258m. “Tier II capital will be further increased by AZN 22m with subordinated debt instruments and an additional AZN 22m will be allocated to “contingency capital”, which will be utilized in the future, if needed”, the Managing Board Chairman underlined.
Noting that a four-year strategic development plan was developed with the new investors, Mr. Hasanov said that according to the plan, AccessBank plans to actively increase its loan portfolio as well as return to a higher profitability level. "The Bank will continue its mission to support micro, small and medium-sized business and actively participate in the development of these sectors. The capitalization process provides the Bank with the necessary resources and it will enable AccessBank to meet the growing financial needs of its customers."
Additionally Mr. Hasanov noted that a new Supervisory Board would be constituted reflecting the new ownership structure and that details would follow in the near future.
Stating that the shares of the European Bank for Reconstruction and Development, KfW and Access Microfinance Holding AG were sold to LFS Advisory GmbH, Hasanov thanked them for their valuable support over the last 15 years.
George Rublee, Representative of the Asian Development Bank: “The Asian Development Bank’s efforts in this recapitalization project underscore the priorities we have agreed with the government of Azerbaijan, a shareholder of ADB. ADB supports the expansion of a vibrant and sustainable financial services sector in the country as a catalyst for inclusive growth. AccessBank serves a priority demographic in Azerbaijan’s macro-economy and will continue to make a valuable contribution to the development and diversification of the economy. We look forward to working with our partner multi-lateral, bi-lateral, and private sector institutions in guiding AccessBank to further success.”
Jitka Bures, Representative of the European Investment Bank: “EIB’s participation in the recapitalization of AccessBank falls under our strategy of providing access to financing for small and medium enterprises (SMEs). The SMEs are the backbone of any economy, providing employment to a large share of the workforce. EIB hopes that AccessBank will further grow its business and will continue having a positive impact on the lives of ordinary people in Azerbaijan.”
Chenggang Jerry Wu, Representative of the IFC: “As one of the founding shareholders, IFC remains committed to AccessBank’s mission. We look forward to working with the new shareholders to support the bank’s next phase of growth and help increase funding for smaller businesses in Azerbaijan, supporting job creation and economic development.”
Oleg Ivaniychuk, Representative of responsAbility: “responsAbility has been strongly supporting AccessBank in the past as a lender and trusted partner during the recapitalization process and will continue this support in the future as a shareholder. We highly appreciate the engagement of other lenders, shareholders and FIMSA during the recapitalization process as well as the strong commitment and dedication of the Bank’s employees. Now we are starting the new phase in the development of the Bank and we are looking forward to supporting it in becoming stronger, more efficient and innovative.”
New share distribution of the shareholders is as follows:
- Asian Development Bank – 19.90%;
- European Investment Bank – 17.39%;
- International Finance Corporation – 16.56%;
- responsAbility-managed investment funds consisting of:
- responsAbility SICAV (Lux) – 2.91%
- responsAbility Management Company S.A. – 7.11%
- Dutch Development Bank (FMO) – 9.41%;
- Austrian Development Bank – 9.17%;
- SIFEM AG - 8.89%;
- EFSE – 2.78%
- Symbiotics SICAV (Lux.) – 2.27%
- GGF – 1.77%
- LFS Advisory GmbH – 1.27%
- Black Sea Trade and Development Bank – 0.58%