XacBank JSC
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?
XacBank, founded in 2001 as a UNDP microfinance project, is now Mongolia’s 4th largest bank by total assets and one of five systemically important banking institutions (D-SIB). They provide an array of financial services and leasing solutions to over a million retail, MSME and corporate customers. They have a rich history in microfinance and a lot of experience in the MSME segment which is key for their business model. They target underserved segments and promote financial inclusion.
What is our funding objective?
The transaction is a 3-year B-loan participation of USD 25 mln in an EBRD-led senior unsecured syndicated loan facility of up to USD 160 mln. The funding will be used to provide on-lending to eligible Micro, Small and Medium Enterprises (MSMEs) in Mongolia, specially targeting young entrepreneurs (100% RI), offering them the necessary funding to grow and sustain their businesses.
Why do we fund this investment?
The facility promotes financial inclusion. Development of MSMEs is critical for the diversification of Mongolia’s economy which relies heavily on the mining industry.
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. As per EBRD disclosure available at this link: FIF - CA YiB - XacBank YiB Syndicated Loan (https://www.ebrd.com/home/work-with-us/projects/psd/55861.html).
More investments
- Website customer/investment
- https://www.xacbank.mn/
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 4/30/2025
- Effective date
- 3/25/2025
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
-
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
- Loan participation
- https://www.ebrd.com/home/work-with-us/projects/psd/55861.html