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Baku, Azerbaijan, May 5, 2009
—IFC, a member of the World Bank Group, will provide a $10 million subordinated loan to AGBank, a leading financial-services provider in Azerbaijan, to enable the bank to extend financing to up to 70,000 new small and medium enterprises.
The loan is aimed at supporting AGBank’s capitalization and growth and is in line with IFC’s strategy to broaden financing opportunities and improve access to affordable funding for micro, small, and medium enterprises in Azerbaijan, particularly during the global economic downturn. IFC will also provide tailored advisory services to build the bank’s capacity for risk management.
“We welcome IFC’s support and expression of confidence in AGBank,” said Chingiz Asadullayev, Chairman of the Supervisory Board of AGBank. “Thanks to the IFC funding and tailored advisory services, we will strengthen our institutional capacity, which is a priority for banks’ shareholders, and provide affordable funding to SMEs.”
Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said: “This subordinated loan to AGBank aims to provide hard-to-find funding to vibrant SMEs, supporting the private sector and helping create jobs. The advisory services aimed at strengthening the risk-management function of one of the leading banks in the country will help promote best practice in the banking sector.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
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