The International Finance Corporation (IFC) Capitalization Fund, a fund managed by the private-investment arm of the World Bank Group, recently announced it will invest a total of USD 40 million in XacBank, a Mongolian community development microfinance institution (MFI) [1]. The investment will be directed towards strengthening the bank’s capital base and increasing financial access for the country’s small and medium-sized enterprises and middle-income home-buyers. As of 2011, XacBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 594 million, a gross loan portfolio of USD 393 million, approximately 77,345 borrowers, return on assets (ROE) of 1.71 percent and return on equity (ROE) of 18.53 percent.
Founded in February 2009, the USD 3 billion IFC Capitalization Fund is a global equity and subordinated debt fund that aims to speed up economic recovery and boost job creation while reducing the impact of the financial downturn that began in 2007, by supporting banks considered vital to the financial markets of individual developing countries.
By Amy Samudre, Research Associate
About XacBank: XacBank is a community development microfinance bank that was founded in 1998 and aims to become a commercial financial institution “by providing inclusive and value adding financial services to the citizens and expatriates, institutions and enterprises of Mongolia, while maintaining its leadership in the global microfinance industry.” XacBank is a subsidiary of TenGer Financial Group, a regional family of companies that also includes XacLeasing, XacSecurity, TenGer Solutions and TenGer Insurance. As of 2011, XacBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 594 million, a gross loan portfolio of USD 393 million, approximately 77,345 borrowers, return on assets (ROE) of 1.71 percent and return on equity (ROE) of 18.53 percent.
About International Finance Corporation: A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
About IFC Capitalization Fund: Founded in February 2009, the USD 3 billion IFC Capitalization Fund is a global equity and subordinated debt fund that aims to speed up economic recovery and boost job creation while reducing the impact of the financial downturn that began in 2007, by supporting banks considered vital to the financial markets of individual developing countries. IFC has contributed USD 1 billion for the IFC Capitalization Fund, while the Japanese government has invested USD 2 billion. IFC estimates that the fund will have a total leveraged impact of around USD 75 billion as others co-invest with the fund. The fund is managed by the IFC Asset Management Company, which is a wholly-owned subsidiary of the International Finance Corporation, a member of the World bank Group.
Sources and Additional Resources
[1] International Finance Corporation, “IFC Capitalization Fund Invests in XacBank to Spport Growth, Access to Finance in Mongolia,” http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/9BA45E54541F3B4842257A2B005AF9D3
MicroCapital Story, May 1, 2012, “MICROCAPITAL BRIEF: Citi to Buy 1.1m Tons of Carbon Credits fro MicroEnergy Credits, Offsetting Cost of Efficient heathers Financed by Mongolian Microfinance Institution XacBank,” https://www.microcapital.org/microcapital-brief-citi-to-buy-1-1m-tons-of-…
MicroCapital Story, July 15, 2011, “MICROCAPITAL BRIEF: responsAbility Loans $8m to Kompanion of Kyrgyz Republic, Eshhata of Tajikistan, XacBank of Mongolia,” https://www.microcapital.org/microcapital-brief-responsability-loans-8m-t…
MicroCapital Story, July 6, 2011, “MICROCAPITAL BRIEF: European Bank of Reconstruction and Development (EBRD) Co-financing $10m in Loans from Mongolian Mirofinance Institution XacBank,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconst…
MicroCapital Story, June 27, 2011, “MICROCAPITAL BRIEF: Incofin VDK MFI Loan Portfolio Loans $5m to Mongolian microfinance Institution XacBank,” https://www.microcapital.org/microcapital-brief-incofin-vdk-mfi-loan-port…
MicroCapital Universe Profile: XacBank,?https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Xac…
MicroCapital Universe Profile: IFC Capitalization Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFC…
MicroCapital Universe Profile: IFC https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: ADB Issues Local-currency Bond in Mongolia to Finance Invescore Lending to Women-led MSMEs
- MICROCAPITAL BRIEF: Imkon of Uzbekistan Nets Convertible Debt from BOPA to Expand Microfinance, SME Finance
- MICROCAPITAL BRIEF: Hamkorbank of Uzbekistan Borrows $50m from FMO to Fund SMEs Owned by Women, Youth; Microenterprise; Climate Projects
- MICROCAPITAL BRIEF: DFIs Invest $109m in Horizon Capital IV to Support SMEs in Ukraine, Moldova
