XacBank MSME Loan

Location:

Mongolia

Project number:

46430

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

23 Jul 2014

Status:

Complete

PSD disclosed:

19 Jun 2014

Translated version of this PSD: Mongolian

Project Description

The EBRD is considering an MSME loan in the amount of up to USD 5 million equivalent in MNT under Mongolian Financial Sector Framework II (MFSF II).

The loan proceeds will be on-lent to private micro, small and medium enterprises in Mongolia addressing the shortage of medium-term local currency funding available in the market.

Transition Impact

The proposed local currency loan to XacBank under the MFSF II framework is expected to provide much needed medium-term local currency funding for Mongolian MSMEs, including those located outside the capital city. In addition, by supporting its long-term client with proven track record, EBRD will add to the overall MSME lending capability of the banking sector in Mongolia.

The Client

XacBank is the fourth largest bank in Mongolia. It is a leading micro and small business lender in Mongolia with 92 branches and service outlets across the country.

EBRD Finance

USD 5 million equivalent in MNT.

Project Cost

USD 5 million equivalent in MNT.

Environmental Impact

Categorised FI. XacBank is an existing client of the Bank and has adopted an Environmental Policy and Environmental and Social Procedures, which satisfy requirements of PR 2 and 9.

Technical Cooperation

In 2011-2012, XacBank has benefited from technical assistance to support the bank’s plans to expand its outreach to SME and corporate clients. The funding was provided by the Korean Government.

Previously, between 2008 and 2010, TC was provided to the bank to support its MSME lending activities. The funding was provided by the EBRD Early Transition Country Fund and the EBRD Shareholder Special Fund.

No new technical cooperation is envisioned for this project.

Company Contact

XacBank HQ Bldg, Ulaanbaatar-14200, Post Branch 20A, PO Box-721, MONGOLIA
E-mail: info@xacbank.mn
Website: www.xacbank.mn
Tel: +976 11 318185
Fax: +976 11 328701

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.