Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Mongolia
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Netherlands Development Finance Company (FMO)
Status: Signed
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-05-31
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Xacbank
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance
Investment Amount (USD): $ 5.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 5.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ FMO website
Updated in EWS: 2017-08-01
XACBANK LLC
FMO-46777

Project Description
Xacbank fulfils an essential role in providing finance to the underserved micro- and MSME segments of Mongolia. FMO's funding will be used to support the growth of the (M)SME portfolio. Xacbank is the fourth largest commercial bank in Mongolia and has been a FMO client since 2007. The Bank has an extensive network of 104 branches and is present in every province in Mongolia. It has a strong social mission that focuses on people, planet and profit. Xacbank originally focused on providing microfinance loans in both rural and urban Mongolia but over the past five years, the bank has moved upmarket and now also finances SMEs and corporates. Due to the challenging Mongolian market conditions, foreign investors' appetite has significantly reduced in the last two years, making FMO funding and syndication efforts additional and impactful.
Investment Description