Share the page
Mongolia: Proparco is supporting XacBank, a bank committed to the development of SME activities
Project
-
Signature date
-
-
Location
-
Mongolia
-
Financing tool
-
Financing amount (Euro)
-
13651255
-
Financing details
-
USD 15m loan
-
Customer
-
XAC BANC
-
Type of customer
-
Financial institution
-
Country of headquarters
-
Mongolia
-
Project number
-
PMN1009
-
Environmental and social ranking
-
IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
In Mongolia, via a USD 15m loan (out of a USD 65m loan arranged by IFC and financed by other DFI donors), Proparco is supporting XacBank, a committed bank seeking to develop its activities to support SMEs
Client presentation
XacBank started its microfinance activities in 1998. It became a commercial bank in 2001, then developed and diversified its range of financing for SMEs and large companies.
XacBank’s slogan “People, Planet, and Prosperity” reflects the positioning of the bank, which has a “triple performance” financial, social and environmental objective.
Project description
This USD 65m loan earmarked to finance SMEs has been set up by IFC (World Bank Group). IFC is contributing USD 5m with the remainder of the financing round exclusively made up of DFIs: FMO, DEG, Obviam and Finnfund. This loan will give XacBank the means to support its SME financing activity which it wants to develop.
Project impact
The loan allocated to XacBank should support the growth in its lending activity during the macroeconomic recovery experienced by the country. The loans allocated by XacBank should financially support over 44,000 microenterprises and small and medium-sized enterprises (SMEs), create jobs and diversify the business sectors of Mongolia’s economy.