fbpx 47930-001: Senior Loans to XacBank and TenGer Financial Group for Supporting Micro, Small, Medium-Sized Enterprises and Leasing Finance | Asian Development Bank

Mongolia: Senior Loans to XacBank and TenGer Financial Group for Supporting Micro, Small, Medium-Sized Enterprises and Leasing Finance

Nonsovereign (Private) Project | 47930-001 Status: Approved

The proposed unsecured senior loans to XacBank for up to $30 million and to TFG (for onlending to XacLeasing) for up to $10 million will support Mongolian MSMEs through subloans made by XacBank and through leases provided by XacLeasing.

Project Details

Project Officer
Gunawardhena, Manohari Private Sector Operations Department Request for information
Country
  • Mongolia
Sector
  • Finance
 
Project Name Senior Loans to XacBank and TenGer Financial Group for Supporting Micro, Small, Medium-Sized Enterprises and Leasing Finance
Project Number 47930-001
Borrower/Company TENGER FINANCIAL GROUP
XACBANK
XacLeasing LLC
Country Mongolia
Location
Type or Modality of Assistance
3102 Loan Ordinary capital resources USD 30.00 million Closed
3103 Loan Ordinary capital resources USD 10.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions - Inclusive finance - Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Gunawardhena, Manohari
Project Sponsor(s) TENGER FINANCIAL GROUP (TFG)
Description The proposed unsecured senior loans to XacBank for up to $30 million and to TFG (for onlending to XacLeasing) for up to $10 million will support Mongolian MSMEs through subloans made by XacBank and through leases provided by XacLeasing.
Objectives and Scope The proposed loan to TFG (for onlending to XacLeasing) will support the Mongolian leasing industry while the proposed loan to XacBank will support Mongolian MSMEs.
Status of Development Objectives The impacts of the loan are (i) growth of the leasing sector; and (ii) greater access to banking credit and leasing services for underserved MSMEs in Mongolia.
Status of Operation/Construction XacLeasing has doubled its leasing portfolio as of June 2018 at $35 million reaching 689 customers compared to $15 million in 2013 and 350 customers.
Linkage to Country/Regional Strategy ADB conducted an independent evaluation of ADB assistance to the financial sector. Based on this analysis, and in view of looming challenges and opportunities, it put forward recommendations for future operations. These included (i) considering nonsovereign equity investments in and loans to Mongolian banks by ADB to strengthen operational capacity; (ii) supporting rural finance by using banks to channel credit to meet the gap in the supply of rural finance in the country; (iii) providing longer-term loans to meet and promote the needs of SMEs; and (iv) supporting the development of nonbank and capital market sectors.
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The loan is classified as category 'FI' treated as C for impacts on the environment.
Involuntary Resettlement The loan is classified as category 'FI' treated as C for impacts on involuntary resettlement.
Indigenous Peoples The loan is classified as category 'FI' treated as C for impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 02 Sep 2013
Credit Committee Meeting 06 Nov 2013
Approval 12 Dec 2013
PDS Creation Date 21 Jan 2014
Last PDS Update 11 Apr 2019

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.