XacBank JSC
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 2001, XacBank JSC is Mongolia’s fifth largest bank by total assets and one of the five domestic and systemically important banking institutions (D-SIB). It provides an array of financial services and leasing solutions to over a million of retail, MSME and corporate customers. The bank has been widely recognized for its efforts in promoting inclusive and sustainable finance and supporting green projects in Mongolia. XacBank is an accredited entity partner of the Green Climate Fund for its projects and programmes. FMO has a financing relationship with XacBank since 2007.
What is our funding objective?
The facility is a senior loan of USD 50 million for a tenor of five years. Sixty percent (60%) of the funding will be earmarked for sub loans to underserved small and medium-sized enterprises (SMEs) such as women-owned, youth-owned and agribusiness SMEs. The remainder forty percent (40%) will be dedicated to eligible green projects.
Why do we fund this investment?
The facility promotes financial inclusion and climate action goals. Development of MSMEs is critical for the diversification of Mongolia’s economy which relies heavily on the mining industry. Green finance component will support initiatives that contribute to environmental sustainability.
What is the Environmental and Social categorization rationale?
XacBank is classified as E&S Category B (with IFC PS TT) in accordance with FMO’s Policy. It has a well-functioning Environmental and Social Risk Management System ("ESMS") in place. XacBank has dedicated and committed staff who continuously work on identifying, monitoring and managing pertinent risks.
More investments
| Date | Total FMO financing |
|---|---|
| 12/14/2022 | USD 50.00 MLN |
| 12/30/2019 | USD 65.00 MLN |
| 9/19/2022 | USD 10.00 MLN |
| 10/4/2021 | USD 6.00 MLN |
| 5/25/2021 | USD 10.00 MLN |
| 2/15/2021 | USD 5.00 MLN |
| 2/15/2021 | USD 15.00 MLN |
- Website customer/investment
- https://www.xacbank.mn/
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 6/20/2024
- Effective date
- 5/30/2024
- Total FMO financing
- USD 50.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B