IFC, CredAgro sign loan agreement in Baku

IFC, CredAgro sign loan agreement in Baku
# 12 September 2008 13:57 (UTC +04:00)
Baku. Nijat Mustafayev – APA-Economics. IFC, a member of the World Bank, signed an agreement with CredAgro, one of the leading microfinance institutions in Azerbaijan, on two US dollar term loans.
The loans will enable CredAgro to increase its lending to microcredit and small enterprise customers.
“IFC will provide a subordinated loan of $4 million with an eight-year tenor and an option to convert into the equity of CredAgro and a senior loan of $6 million with a three-year tenor,” IFC said a statement.
“Cooperation with IFC will enable us to expand CredAgro’s microfinance activities into new regions in rural areas of Azerbaijan. IFC’s advisory services will help us continue strengthening CredAgro’s institutional capacity,” said Eldar Jafarov, General Director of CredAgro.
IFC is the number one international investor in terms of outreach to MFIs working with more than 100 institutions in over 60 countries. Its cumulative committed portfolio is $942 million as of June 2008.
CredAgro, set up in 2000, is a microfinance institution with a strong focus on agricultural and rural lending.
CredAgro lends loans at 24-36% annually.
It operates 11 branches and 6 offices throughout the country.
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THE OPERATION IS BEING PERFORMED