The EBRD is considering a Senior A/B loan to XacBank in the amount of up to USD 38m, of which the A loan will be up to USD 10m, while another USD 5m is expected to be co-financed by TaiwanICDF and the remaining B loan of up to USD 23m will be syndicated to financial institutions on best efforts basis. The strong business expansion of the Mongolian economy and its corporate sector require an additional source of medium to longer term funding which will be provided by the proposed debt package.
The project will provide longer term lending to micro, small and medium-sized enterprises (MSMEs) at a time when the availability of medium- and long-term financing to these companies in Mongolia remains constrained. The participation of commercial lenders in the syndicate would demonstrate new ways of financing activities to other Mongolian financial institutions. The project will also facilitate improvement of XacBank's FX lending procedures for stress testing and disclosure of risks associated with such loans, thus demonstrating higher standards of business conduct to other Mongolian banks.
XacBank is the fourth largest bank in Mongolia. It is a leading microfinance provider with 92 branches and service outlets across the country. In recent years, the bank has leveraged its extensive microfinance experience to broaden the bank’s presence in the SME business segment, in line with economic development in Mongolia.
Up to US$ 10million.
Up to US$ 38 million.
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.
XacBank is currently benefiting from technical assistance to support the bank’s plans to expand its outreach to SME and corporate clients. The funding is 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.
XacBank HQ Bldg, Ulaanbaatar-14200, Post Branch 20A, PO Box-721, MONGOLIA
Tel: +976 11 318185
Fax: +976 11 328701
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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