A Tailored Solution to Support Small Business in Mongolia www.ifc.org
In Mongolia, lack of financing and capacity are key barriers for small business owners to grow and expand their businesses. The ongoing pandemic has further exacerbated the situation.
In response, IFC launched a series of strategic efforts to support Mongolian businesses since the outbreak. The latest initiative is an innovative Mongolia Tugrik (MNT)-denominated loan facility to Transcapital, which will ultimately benefit more than 15,000 micro and rural entrepreneurs.
“IFC’s innovative financing will allow us to expand our support to Mongolian micro and small enterprises while contributing to the nation’s effort to rebound from the COVID-19 crisis,” said Altanzul Zorigt, CEO, Transcapital.
The facility includes a three-year loan of about MNT 8.4 billion (about $3 million) from IFC’s own account and a syndicated loan of about MNT 25.2 billion (about $9 million) from impact investment funds. They include Invest in Visions GmbH, as arranged by German research agency, Agents for Impact GmbH and Co. KG, as well as BlueOrchard Finance Ltd.’s Microfinance Initiative for Asia, ACTIAM and Developing World Markets.
“This is the first time IFC has invested in a non-banking financial institution in Mongolia. This is also our first local currency syndication in the country. The financing signals our strong commitment to helping Mongolian enterprises in the recovery and rebuilding process in the wake of COVID-19,” said Rufat Alimardanov, IFC’s Resident Representative for Mongolia.