XACBANK and PROPARCO signed a credit facility agreement worth 15 million US dollars
Ulan Bator, 18 July 2013.
Xacbank and PROPARCO, a subsidiary of the Agence Française de Développement (“AFD”) committed to private sector financing, executed a credit facility agreement worth 15 Million United States Dollars. The signing ceremony was held in the presence of Mr. Bat-Ochir Dugersuren, Chief Executive Officer of XACBANK, H. E. Yves Delaunay, Ambassador of France to Mongolia and Pierre-Alain Pacaud, Regional Director of Proparco in North and South-east Asia.
Mongolia has become one of the fastest growing countries in the world mainly thanks to its vast mineral resources and is transforming progressively to a market economy. The country is expected to maintain a fast pace in the years ahead and Mongolia is on its way to become a middle-income country. Besides, the Mongolian banking sector has been one of the most attractive sectors for foreign investors in the recent years and the Mongolian banks have already attracted considerable interest from foreign investors, although vulnerabilities remain.
“Mongolia, with its wealth of natural resources has strong growth potential. Significant economic progress has been made over the past years. However, challenges remain in ensuring that this growth is sustainable and benefits all. We are happy to support a first class actor like XACBANK in pursuing its business model of providing financial services to all segments of the community. PROPARCO’s loan will contribute to the financial integration of the disadvantaged members of the population while also growing the credit offer for micro, small and medium-sized enterprises” explains Mr. Pierre-Alain Pacaud, Head of PROPARCO’s regional office for North and South-east Asia. PROPARCO will be mobilizing its entire range of long-term financial instruments (loans, equity investments and guarantees) in the sectors of infrastructure, banking and financial intermediation, agriculture, industry and services. It will also seek to promote the best environmental, social and governance standards among its clients.
XACBANK is a leading bank in Mongolia, delivering comprehensive banking services to all segments of the market in the country including Micro customers, Small and Medium-sized Businesses as well as large corporations. “We are honoured to partner with PROPARCO and become the first Mongolian Bank to establish financing relationship with one of the main development finance institutions in the world. We are sure that PROPARCO’s funding will enable the Bank to support many micro, small and medium-sized enterprises in Mongolia with much needed longer term lending service” said Mr. Bat-Ochir Dugersuren CEO of XACBANK.
ABOUT
XACBANK is a leading bank in Mongolia and one of the largest, serving retail and micro business customers, Small and Medium-sized Businesses as well as large corporations with a range of inclusive banking, fair investment and other financial products and services. It operates in all 21 provinces and the capital city serving more than 500 thousand customers through its 107 retail and business branches as well as specialized banking outlets which includes more than 1000 merchants and AMAR mobile banking agents and 49 Savings and Credit Cooperatives. The Bank aims to create a sustainable value for its shareholders and institutional investors, while promoting a triple-bottom line vision and mission as built around the “Planet, People and Profit.”
XACBANK is a leading bank in Mongolia and one of the largest, serving retail and micro business customers, Small and Medium-sized Businesses as well as large corporations with a range of inclusive banking, fair investment and other financial products and services. It operates in all 21 provinces and the capital city serving more than 500 thousand customers through its 107 retail and business branches as well as specialized banking outlets which includes more than 1000 merchants and AMAR mobile banking agents and 49 Savings and Credit Cooperatives. The Bank aims to create a sustainable value for its shareholders and institutional investors, while promoting a triple-bottom line vision and mission as built around the “Planet, People and Profit.”
PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs).
PROPARCO is one of the main bilateral development finance institutions in the world. It invests in four continents encompassing the major emerging countries and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility.
PROPARCO is one of the main bilateral development finance institutions in the world. It invests in four continents encompassing the major emerging countries and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility.
