IFC Provides $65 Million to XacBank to Expand Lending to Small Businesses in Mongolia

IFC, a member of the World Bank Group, is providing a $65 million loan to XacBank to support the expansion of access to finance for more than 44,000 micro, small and medium enterprises (MSMEs), to create jobs and promote economic diversification in Mongolia. 
 
The move marks the first syndicated loan to a Mongolian commercial bank. IFC’s funding consists of $5 million from IFC’s own-account and $60 million syndicated from five development financial institutions including DEG – Deutsche Entwicklungs- und Investitionsgesellschaft mbH, Proparco, FMO – the Netherlands Development Finance Company, Swiss Investment Fund for Emerging Markets (SIFEM) and FinnFund, with the aim of providing over 38,000 more loans to micro enterprises and over 6,700 extra loans to small and medium sized businesses.