FMO, the Dutch entrepreneurial development bank, has successfully arranged a USD 150 million syndicated A/B term loan facility to XacBank JSC, one of Mongolia’s leading universal banks.
Through this facility, XacBank and the participating lenders are committed to supporting green financing and fostering a more inclusive economy, with 20% of the proceeds targeted towards green projects and the remainder 80% earmarked for women, youth, agricultural SMEs, and microenterprises, including those in rural areas.
FMO acted as the lead arranger, agent, and lender of this A/B syndicated facility, mobilizing funds from both private and DFI capital and introducing XacBank to a new and diverse range of lenders, whose common goal is to support sustainable development in Mongolia.
Following FMO in this syndicated transaction as parallel A-lender there is Cassa Depositi e Prestiti (CDP), the Italian Development Bank, alongside a diverse group of B-loan participants comprised of trusted partners of FMO such as the ILX Funds, Nations Trust Bank, BlueOrchard Microfinance Fund, Responsibility managed financial inclusion funds, Global Climate Partnership Fund, and Atlantic Forfaiting. The syndicated facility includes a 5-year and a 3-year tranche and it is one of the largest syndicated facilities arranged by FMO for XacBank.
XacBank, FMO’s customer since 2007, is Mongolia’s fourth-largest commercial bank, serving over 1 million customers—around 30% of the population—through 71 branches and digital channels. Known for its strong focus on financial inclusion and sustainability, XacBank has a robust capital position and a proven track record in MSME lending and green finance. The bank is an accredited entity of the Green Climate Fund and a recognized leader in the Mongolian Sustainable Finance Initiative.
Mongolia faces unique environmental and economic challenges due to its geographic location and reliance on mining exports. While GDP growth is projected at 6.5% in 2025, the economy remains vulnerable to external shocks and climate change impacts, which disproportionately affect rural livelihoods and rain-dependent agriculture. Strengthening MSMEs and promoting green investments are critical to Mongolia’s long-term resilience and sustainable development.
Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO, said: “We are proud to have successfully closed this landmark syndicated facility as lead arranger, mobilizing capital from a diverse group of international lenders. This achievement strengthens our partnership with XacBank and demonstrates our shared commitment to sustainable economic development and climate action. Together, we are making significant contributions to reducing inequalities, supporting green financing, and empowering underserved MSMEs in Mongolia.”
Tsevegjav Gumanjav,CEO of XacBank JSC, said: “We highly value FMO’s leadership in mobilizing this syndicated facility and the confidence shown by the participating lenders. The financing will allow XacBank to further strengthen MSMEs and microentrepreneurs that play a critical role in employment, income generation, and economic resilience across Mongolia.”
Cristina Morelli, Head of Sovereign, Corporate and Financial Institutions Financing at CDP, declared: “By partnering with XacBank, we aim to strengthen local enterprises, particularly MSMEs that are central to Mongolia’s economy. A key focus is the cashmere value chain, where improved access to finance can help businesses adopt more sustainable practices, enhance resilience, and create long-term value for local communities while protecting natural resources. This initiative, fully aligned with CDP’s mission to promote sustainable development in partner countries, also reinforces areas of relevance to Italy’s industrial ecosystem and contributes to stronger connections between local and international value chains.”
__
About XacBank
XacBank JSC is Mongolia’s fourth-largest commercial bank, supported by strong governance practices and a diversified shareholder base that includes international and development finance institutions such as IFC, EBRD, ORIX, and NBC. The Bank has a long-standing focus on MSME financing and is recognized for its role in advancing sustainable finance in Mongolia.
About CDP
Cassa Depositi ePrestiti is the Italian Development Bank which has been supporting the Italian economy since 1850. The main goal of CDP is to accelerate the industrial and infrastructural development of Italy and in partner countries to boost its economic and social growth. CDP focuses its activities on sustainable development at local level, supporting the innovation and growth of Italian enterprises, also in the international arena. It partners local authorities, in a financing and advisory capacity, to create infrastructures and improve services of public value. CDP also participates actively in international cooperation initiatives to realize projects in developing countries and emerging markets. Cassa Depositi e Prestiti is entirely financed by private capital, through the issuing of Postal Savings Bonds and Postal Savings Passbooks, and through issuances on national and international financial markets.
