TBC Kredit

Building a sustainable business to provide financial services to the un(der)served


1999- 2007; ongoing as a shareholder


TBC Kredit was created by Enclude (formerly doing business as ShoreBank International) in 2000 as a nonbank financial institution designed to lend to businesses in Azerbaijan that were too large for microloans but too small for traditional SME lending. It is now majority owned by TBC Bank (Georgia) and Enclude continues to hold a minority stake and serves on the Board of Directors.


In 1999, under a $20 million USAID grant, Enclude promoted small business lending through local banks in Armenia, Azerbaijan and Georgia. When it became clear that this model would not work in Azerbaijan, Enclude created SOA Kredit (now TBC Kredit) to provide SME finance for this "missing middle" segment. Over the years, the company's objectives have broadened to include microfinance, affordable housing, small business loans, and responsible consumer finance - all in response to market needs and consistent with the company's origins of meeting the needs of un(der)served entrepreneurs and households.



SOA Kredit consistently demonstrated best practices, maintained a high quality portfolio and rolled out the first new mortgage finance product in its market.

Between 2005 and 2007, the loan portfolio grew from $4 million to $10 million, which attracted Georgia’s TBC Bank to invest as part of its pan-Caucasas strategy.

As of the end of 2013, TBC Kredit had a loan portfolio of over 40 million USD consisting of small business, mortgage, microfinance and consumer loans. TBC Kredit’s financial performance demonstrates that providing financial services to un(der)served markets is a sustainable business model.


For the first time Azeri businesses needing loans between 1,000 to 10,000 USD had access to loans provided by a formal financial institution.

Azeri families were given the opportunity to finance the purchase or the renovation of their homes.

In addition to the direct benefits delivered to TBC Kredit’s customers, TBC Kredit catalysed other local market players to reach more un(der)served entrepreneurs and households. The Azerbaijan Government sought to introduce an affordable mortgage fund modelled after the structure of the affordable housing portfolio of TBC Kredit. Later, commercial banks began to expand their small business financing outreach and to introduce microfinance credit products.


Created a new financial institution; hired and managed staff; recruited directors; established and implemented lending policies, products and processes to serve the targeted small enterprise, affordable housing, and micro-entrepreneur segments.

Designed and launched new products, including mortgages; implemented new technologies; created a transparent and open sales culture; provided career opportunities for young Azeri bankers.

Raised over $12 million in capital to expand the loan portfolio.

Managed the investment of TBC Bank to take a majority stake in the company.

Enclude is a minority shareholder and has consistently held at least one seat on the Board of Directors from conception to the present.


To successfully grow a nonbank finance company, it is necessary to develop strategies that fit the local operating environment and to design products and services that meet the needs of the customer segments the company is intending to reach.

Once the business model is set, focused efforts must be spent on governance and management to ensure that the young institution is grounded and develops a professional culture of integrity and transparency – a culture that is clear about the purpose of the company. As a small company, it is important to stay nimble but also to remain focused on what it does best – serving the customer segments others have not been able (or have not wanted) to serve. As competition increases when the success of the institution becomes known, continue to focus on the company’s best practices and understanding the customers’ needs.



Enclude’s long-term perspective has been key to our success, helping us build a strong business that meets the real needs of our customers.  We have a true partnership, each learning from and challenging the other as we work toward the shared outcomes.  What we have done together in Azerbaijan can be replicated elsewhere; we look forward to exploring those possibilities with Enclude in the future.

Nino Masurashvili

Supervisory Board Member, TBC Kredit; Deputy General Director, TBC Bank