TFG Equity 2013

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The proposed project will consist of IFC’s equity investment of up to MNT10.4 billion (US$7.5 million equivalent) in Tenger Financial Group (“TFG” or the “Company”), an existing equity investee company of IFC, by purchasing from the existing shareholders. TFG, established in 2001 on the base of its major subsidiary XacBank, is a Mongolian financial group offering a full range of financial services. Its major subsidiaries include XacBank (comprising nearly 96% of its total assets), XacLeasing, Tenger Insurance, TenGer Capital (brokerage and investment advisory services), XacSecurity (premium quality security services), Tenger Solutions (mobile banking solutions in house developer) and Xinjiang Tianrong Micro Credit Company (“Xinjiang MCC”, a company based in western China). IFC started its long term partnership with TFG in 1999, with an advisory program to X.A.C. LLC, one of the predecessors of XacBank, and became a shareholder of the Company in 2008. IFC’s further increasing stake in TFG through the proposed investment, will demonstrate confidence in both the Company and the Mongolian financial market, will provide comfort to the new strategic international investor, and will help the Company to achieve a more balanced shareholding structure and a more transparent corporate governance, which will constitute strong basis for the Company’s future development.