FIF - YiB Senior Loan - XacBank II (EFSD+1)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior loan of up to US$ 80 million in MNT or US dollar equivalent to XacBank JSC ("XacBank") under the EBRD Youth in Business Programme in Central Asia ("YiB CA Programme"), aimed at supporting youth-led or youth-owned micro, small, and medium sized enterprises in Mongolia ("Youth MSMEs").

Project ID 57050

Status Exploratory

Location

Mongolia

Industry Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Tamir Gankhuyag
tamir.g@xacbank.mn
+(976) 7577-1888
https://www.xacbank.mn/en
XacBank HQ Bldg, Ulaanbaatar-14200, Post Branch 20A, PO Box-72, MONGOLIA

Project ID 57050

Status Exploratory

Location

Mongolia

Industry Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

14 May 2026

Disclosure date

09 Apr 2026

Project Description

Project Objectives

The project will address the shortage of credit available to Youth MSMEs and help remove structural barriers to their growth in Mongolia. It will focus on strengthening and embedding the banking infrastructure needed for sustainable youth-focused lending, enhancing XacBank's capacity to provide tailored financial products and support services, and ultimately promoting the long-term inclusion of young entrepreneurs in Mongolia's MSME market.

Transition Impact

The project's transition impact stems from its Inclusive and Competitive qualities. The operation is expected to increase lending to Youth MSMEs in the country, facilitate XacBank's capacity building and promote the transfer of skills to young business owners and managers in Mongolia, including through non-financial services ("NFS").

Client Information

XAC BANK JSC

XacBank is the fourth-largest commercial bank in Mongolia with total assets of US$ 1.9 billion, a net loan portfolio of US$ 1.2 billion, and a market share of approximately 9 per cent as of year-end 2025. As a universal bank, XacBank primarily focuses on MSME and retail lending and operates nationwide through a network of 71 branches.

EBRD Finance Summary

USD 80,000,000.00

Total Project Cost

USD 80,000,000.00

Additionality

Innovative financing structures and/or instruments: The EBRD offers financing, including MNT denominated, on terms and tenor, which are not readily available in the market. In addition, the client will benefit from a First Loss Risk Cover ("FLRC") and a Result Based Compensation ("RBC"), which are tailor made and innovative instruments in the Central Asian market.

Knowledge, innovation, and capacity building: The EBRD provides expertise, innovation, knowledge and capabilities that are critical to the effective implementation of the project's objectives. The operation will provide capacity building support to XacBank and Youth MSMEs through training and advisory services, with a strong focus on digital delivery to expand regional outreach and attract young entrepreneurs.

Standard setting: The YiB CA Programme includes a comprehensive approach to support higher inclusion standards for participating financial institutions ("PFIs"). Through a combination of financing, FLRC, RBC, and TC, the programme will help XacBank strengthen its inclusive financing standards by generating a better awareness and understanding of the needs of young entrepreneurs.

Green assessments

The project is determined aligned with the Paris Agreement based on the application of the EBRD's Paris alignment methodology for indirect finance: (i) defined use of proceeds, (ii) applicable exclusions and (iii) the client's commitment to work with the EBRD on making finance flows consistent with a transition towards low greenhouse gas emissions and climate-resilient development.

Technical Cooperation and Grant Financing

The loan will be supported by (i) the FLRC in favour of XacBank; the instrument will be funded by the EU via the European Fund for Sustainable Development Plus (EFSD+) Programme, and (ii) the RBC in favour of XacBank; to be funded by SSF. The combined technical cooperation components will help XacBank enhance its inclusive financing standards by improving awareness and understanding of the needs of underserved young entrepreneurs.

Company Contact Information

Tamir Gankhuyag
tamir.g@xacbank.mn
+(976) 7577-1888
https://www.xacbank.mn/en
XacBank HQ Bldg, Ulaanbaatar-14200, Post Branch 20A, PO Box-72, MONGOLIA

PSD Last Updated

09 Apr 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FIF - YiB Senior Loan - XacBank II (EFSD+1)

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

FIF - YiB Senior Loan - XacBank II (EFSD+1)

Overview

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Environmental and Social Summary

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)