“The project focuses on maintaining XacBank's regional penetration and on attracting new MSME clients, which will ultimately promote the competitiveness and resilience of the local economy,” said Nick Tesseyman, EBRD Managing Director for Financial Institutions, who signed the project with XacBank’s CEO, Bold Magvan.

Bold Magvan added: “We are pleased to express our gratitude to our long-standing partner, the EBRD, for their professionalism and goodwill in leading yet another successful syndication for XacBank. The loan proceeds will be deployed to fund MSMEs, which are the heart of job creation and economic growth in Mongolia. Ultimately, XacBank will be able to contribute to improving the well-being of the Mongolian people.”

In her speech at the signing ceremony, Natasha Khanjenkova, EBRD Managing Director for Central Asia, Russia and Mongolia, said: “We are proud to be supporting the micro, small and medium-sized businesses in Mongolia and contributing to the recovery and sustainable development of the country’s economy together with such worthy and longstanding partners as XacBank”..

Xacbank is the fourth largest bank in Mongolia (measured by total assets and loan portfolio). An EBRD client since 2006, it has historically been focused on MSMEs. This loan follows up on similar loans previously extended by the EBRD to Xacbank, including the first syndicated loan to a Mongolian FI which will be repaid by the end of 2017.

The loan is split between US$ 10 million A loan provided by the EBRD from its own account and US$ 30 million B loan provided by a syndicate of lenders consisting of TRANSKAPITALBANK, IIV-Mikrofinanzfonds, BANK IM BISTUM ESSEN EG, and responsAbility SICAV (Lux) (acting for its sub-funds responsAbility SICAV (Lux) Mikro- und KMU-Finanz-Fonds, responsAbility Sicav (Lux) Micro and SME Finance Leaders, and responsAbility SICAV (Lux) Financial Inclusion Fund).

This will also be the first syndicated loan to a Mongolian FI since the country’s recent economic difficulties and the first syndicated loan since a new IMF programme was put into place.

The EBRD is a leading institutional investor in Mongolia, with over €1.424 billion invested in over 92 projects in the country to date. The Bank’s investments aim to make the local economy more competitive, integrated and resilient.