XacBank JSC
Status: Approved investmentWhy disclosure?
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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 is one of Mongolia’s leading universal banks and the 4th largest by assets. It serves over 1 million customers (~30% of the population) through 71 branches and robust digital channels. Its portfolio is strategically diversified across retail, MSME, corporates, and leasing. A long-standing client since 2007, XacBank has a solid track record and holds Fitch: B+ (Stable) and Moody’s: B1 (Stable) ratings.
What is our funding objective?
The provided facility is a senior unsecured A/B syndicated term loan of up to USD 150 million, with FMO acting as Lead Arranger, Agent, and Lender. FMO will provide up to USD 40 million from its own account, while the remaining amount will be mobilized from the A-lender (CDP), B-participants, and through FMO Investment Management-serviced funds, thereby diversifying the bank’s funding sources. The facility supports green projects listed on the FMO Master Green List, as well as Women, Youth, and Agriculture MSMEs, including Certified Cashmere businesses.
Why do we fund this investment?
This investment supports FMO’s strategic objectives of advancing financial inclusion and climate action. MSME development is critical for diversifying Mongolia’s economy, which remains heavily reliant on mining, while the green finance component fosters environmental sustainability and climate resilience. The transaction is earmarked 20% for Green initiatives and 80% for Reducing Inequalities, focusing on women, youth, agriculture, rural MSMEs, and micro enterprises
What is the Environmental and Social categorization rationale?
From an Environmental and Social perspective, XacBank is classified as Category B under FMO’s policy, aligned with IFC Performance Standards. The bank has a well-functioning Environmental and Social Risk Management System (ESMS) and dedicated staff who actively identify, monitor, and manage relevant risks.
More investments
- Website customer/investment
- https://www.xacbank.mn/
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 12/9/2025
- Effective date
- 12/1/2025
- Total FMO financing
- USD 64.00 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