Finnfund boosts green and women-owned enterprises in Mongolia with an Investment in XacBank

Finnfund invests in XacBank, one of the leading banks in Mongolia, to boost green growth and lending to micro, small, and medium enterprises (MSMEs), especially those owned by women. Finnfund’s 10 million US dollar senior loan facility is part of an IFC-led USD 90 million syndicated loan package and eligible for the 2X Challenge gender investing initiative.

XacBank will use 30% of this funding for on-lending to green projects the remaining 70% to MSMEs, of which 71%will be earmarked for women-owned ones. Green projects can include for example renewable energy projects and energy-efficient technologies. XacBank places a strong emphasis on supporting women-owned MSMEs. They provide targeted loans and financial services to help women entrepreneurs overcome barriers to credit and grow their businesses.

XacBank has been in Finnfund’s debt portfolio since 2019. “We are happy to continue our cooperation with a well-run responsible lender in Mongolia with focus on important segments like MSMEs and women entrepreneurs as well as commitment to on-lending towards loan products with purpose to energy-efficient end usage, all of which are well aligned with Finnfund’s priorities” says Antti Partanen, Investment Manager at Finnfund.

The loan package was also supported by a performance-based incentive from IFC, a member of the World Bank Group, as the implementing partner of Women Entrepreneurs Opportunity Facility (WEOF)—a partnership between IFC and Goldman Sachs 10,000 Women—and the Women Entrepreneurs Finance Initiative (We-Fi).

XacBank was founded in 2001 and has a network of 73 retail branches and two business service branches across the country. XacBank is known for its commitment to sustainability and social responsibility and actively finances the green transition in Mongolia.

More information:
Antti Partanen, Investment Manager, Finnfund tel. +358 41 468 6333, antti.partanen@finnfund.fi

Media contact:
Valpuri Mäkinen, Communications and Marketing Manager, Finnfund tel. +358 50 384 2105, valpuri.makinen@finnfund.fi