XacBank Syn 2022

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 The proposed investment is an up to US $130mn senior loan syndication to XacBank LLC (the Bank), an existing IFC partner and the fifth largest bank in Mongolia, consisting of up to US$40 million for IFC’s own account and mobilization of up to US$90 million from international lenders. The loan aims to support XacBank to grow its lending portfolio in two key priority sectors - climate and micro, small and medium enterprises (MSMEs) finance, including women-owned MSMEs in Mongolia and is expected to be supported by the Women Entrepreneurs Finance Initiative (We-Fi) and the Women Entrepreneurs Opportunity Facility (WEOF) (the Project).  Assuming that the Project will fully reach the agreed impact targets, IFC as implementing entity of WEOF and We-Fi is expected to provide up to US$329,000 (equivalent to up to 0.25% of the total project cost of US$130 million) as a performance-based incentive (“PBI”) to support additional on-lending to women-owned small and medium enterprises (“WSMEs”) and women-owned very small enterprises (“WVSEs”) to help counter the gender financing gap in Mongolia. IFC is open to engaging further with financial institutions and consider structures similar to the one proposed in this investment with the support of WEOF and We-Fi. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Finance Institution (“DFI”) Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at:  www.ifc.org/blendedfinance.