Region and country of operations: Asia, Mongolia
Jurisdiction of registration: Mongolia
Business sector: Financial institution
Date of agreement (month/year): 6/2019
Finnfund’s financing: USD 5,000,000
Share of Finnfund’s financing: 8%
Size of project/financing: USD 65,000,000
Environmental and social category: FI-B
XacBank is the fourth largest bank in Mongolia and it serves retail, micro-, small and medium-sized enterprises (MSMEs) and corporate clients through almost 90 branches across Mongolia. XacBank has a long history with development finance institutions, and it has implemented corporate governance and risk management practices, including those related to E&S sustainability.
Main development impact
The funding provided by Finnfund will enable the bank to provide increased financing to MSMEs and to improve access to finance in Mongolia. Financing MSMEs will enable them to invest in their businesses which leads into job creation and contributes to the country’s overall economic development and growth. In 2017 around half of XacBank’s MSME customers were businesses owned by women.