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 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 LLC XacLeasing LLC |
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| Country | Mongolia |
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| Location | |||||||||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Finance / Banking systems and nonbank financial institutions - Inclusive finance - Small and medium enterprise finance and leasing |
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| 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) |
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| 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.
| Title | Document Type | Document Date |
|---|---|---|
| Senior Loan to TenGer Financial Group/XacLeasing LLC for Supporting Leasing Finance: Extended Annual Review Report | Extended Annual Review Reports | Oct 2019 |
| Senior Loan to XacBank for Supporting Micro, Small, and Medium-sized Enterprises: Extended Annual Review Report | Extended Annual Review Reports | Sep 2017 |
| XacBank and TenGer Financial Group for Supporting Micro, Small, Medium-Sized Enterprises and Leasing Finance | Reports and Recommendations of the President | Nov 2013 |
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.
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