Xac Syndication

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The proposed investment entails a syndicated senior loan facility to XacBank, including an IFC A loan of up to US$15 million and IFC B loans or parallel loans of up to US$90 million, in order to promote access to finance in Mongolia and strengthen XacBank’s funding position. XacBank originated in 1998 as a microfinance project sponsored by the United Nations Development Program and the United States Agency for International Development, transformed into a bank in 2001, and is currently the fourth largest bank in Mongolia in terms of outstanding loans. By June 2015, the Bank had 90 branches and 1,477 staff, served over 460,000 active depositors and over 100,000 active borrowers, and had total assets of MNT1,884 billion (US$950 million equivalent) and gross outstanding loans of MNT1,289 billion (US$650 million equivalent). IFC started partnership with XacBank in 1999 by providing advisory services to assist its transformation into a bank, and provided it a few senior loans and subordinated debts in the past ten years to support its business growth.