The Dutch Entrepreneurial Development Bank (FMO) has arranged a USD 100 million syndicated loan to XacBank, one of Mongolia’s leading universal banks. The five-year tenor of the loan will strengthen XacBank’s long-term funding base and allow the bank to further grow and expand in its focus areas in retail, micro and small and medium enterprises (SMEs). XacBank is actively engaging with the MSME sector with a focus on the underbanked segment, which matches well with FMO’s strategy to support economic and diversified growth in the country. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a close to 50-year proven track-record of empowering people to employ their skills and improve their quality of life. Linda Broekhuizen, Chief Investment Officer of FMO said, “The financing signals FMO’s long-term commitment to the Mongolian market and we are proud to collaborate in this large syndicate with our international financing partners OFID and IBEC. XacBank fulfills an essential role in providing finance to the underserved micro and SME segments in Mongolia contributing significantly to job creation as well as diversification of the Mongolian economy.” FMO commits USD 65 million and in addition mobilizes funding from diverse international financing partners: The OPEC Fund for International Development (OFID) commits USD 25 million and The International Bank for Economic Co-operation (IBEC) commits USD 10 million. “XacBank has a strong focus on MSMEs, Green Finance and retail customers as a part of its mission to create sustainable growth in the banking and financial sector of Mongolia. As we expect Mongolian economic growth to slightly decrease from 6.9 percent to 6.3 percent and despite facing challenging macroeconomic conditions in 2020, USD 100 million syndication loan to XacBank shows FMO’s high confidence and commitment to Mongolia and XacBank,” commented Tsevegjav Gumenjav, CEO of XacBank.

Published Date:2020-01-15