The deal would be IFC's first investment using the Mongolian tugrik and its first business with a non-banking financial institution in the country, IFC said in a statement.

With the deal, Transcapital will be able to provide more access to finance for small enterprises and underserved individuals, especially women and people living outside the capital of Ulaanbaatar, IFC said.

It is also expected to help develop Mongolia's microfinance sector by allowing small institutions access to midterm funding in the local currency and by strengthening institutional capacity.

IFC said it will also help Transcapital obtain loans from international investors.

"Such funding is expected to be further curtailed given the impact of the ongoing COVID-19 crisis on global markets and on the Mongolian economy," the statement added.

Transcapital is the largest microfinancer in Mongolia, according to the World Bank unit.

The company is majority-owned by the Namsraijav family. Transcapital founder Zorigt Namsraijav and CEO Altanzul Zorigt hold 93% of the company.

Zorigt Namsraijav is also the founder of the Tuushin Hotel and Tuushin Group, operator of the country's first freight forwarder.

IFC says in another statement that it is involved in all key sectors of the local economy, from financial services and agribusiness to infrastructure and sustainable mining.

Since starting Mongolian operations in 1997, IFC has invested more than $470 million in the country.

IFC's other investment in the financial sector is Khan Bank, the country's largest lender. It recently extended a $70-million bond and debt package to the bank.

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