Xacbank Limited Liability Company
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 2001, XacBank is Mongolia’s fifth largest bank in terms of total assets and third in terms of net profits, holding a 9% market share in loans and deposits (as of YE2021). In 2016, XacBank became the first accredited private commercial bank by the Green Climate Fund (“GCF”) in developing countries and is co-lending in renewable energy projects in Mongolia. FMO has had a financing relationship with XacBank since 2007.
What is our funding objective?
The loan will fund the growth of XacBank’s SME portfolio. Proceeds will be earmarked to green lending and loans to women-owned SMEs.
Why do we fund this investment?
FMO aspires to build a strong relationship with XacBank, which has a strategy of sustainable commercial development through financing SMEs (including women-owned SMEs and green projects). It thereby enables those companies to invest in their businesses, support jobs and contribute to the overall economic development and growth of the Mongolian economy.
What is the Environmental and Social categorization rationale?
XacBank is classified as E&S Category B (with IFC PS TT) in accordance with FMO’s Policy. It has a well-functioning Environmental and Social Risk Management System ("ESMS") in place. XacBank has dedicated and committed staff who continuously work on managing, monitoring and improving the ESMS.
More investments
| Date | Total FMO financing |
|---|---|
| 12/30/2019 | USD 65.00 MLN |
| 9/19/2022 | USD 10.00 MLN |
| 10/4/2021 | USD 6.00 MLN |
| 5/25/2021 | USD 10.00 MLN |
| 2/15/2021 | USD 5.00 MLN |
| 2/15/2021 | USD 15.00 MLN |
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 11/16/2022
- Effective date
- 12/14/2022
- Total FMO financing
- USD 50.00 MLN
- Funding
- FMO NV
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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) - B