Project detail - XACBANK LLC


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Who is our client

XacBank (“Xac”), FMO’s longstanding client in Mongolia is one of the key banks in the FI Asia Mongolia strategy. Established in 2001 Xac is Mongolia’s fourth largest bank measured by total assets. The bank is leading in (FMO supported) sector initiatives like the Mongolia Sustainable Finance Initiative, the Green Credit Fund and the Mongolian Bankers Association. FMO has a financing relationship with Xac since 2007.

Funding objective

The proposed investment aims to provide senior loan to Xac, to help it capture the potential lending growth during the recovery of the country’s macro economy, and enable it to eventually provide more financing support to the micro, small and medium enterprises (“MSMEs”) in the country.

Why we fund this project

The senior loan allows the bank to grow further and expand its focus areas, green and SMEs. Xac has an extensive network of branches throughout Mongolia. Xac originally focused on providing microfinance loans in both rural and urban Mongolia but over the past years the bank has moved upmarket and now mainly focuses on SMEs (around 30% of the total portfolio, in addition to 10% micro-business loans) and retail lending (40%- mortgages, credit cards). The bank is also a market leader in Green Lending. As of 2018, Xac has become an accredited entity of the Green Climate Fund (GCF).

Environmental and social rationale

Xac has been classified as FI-B E&S risk category. It has a current existing and well-functioning Environmental and Social Risk Management System in place based on local Mongolian legislation. Xac has a dedicated and committed E&S staff in place who continuously work on managing, monitoring and improving the ESMS.

More investments

Date Total FMO financing
12/30/2019 USD 65.00 MLN
5/8/2018 USD 6.00 MLN
1/18/2018 USD 10.00 MLN
5/31/2016 USD 5.00 MLN
5/4/2016 USD 15.00 MLN
Financial Institutions
Signing date
Total FMO financing
USD 10.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)