Transcapital (IFC-43012)

Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 25, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
TRANSCAPITAL NBFI, LLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 4.49 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 27, 2021

Disclosed by Bank Apr 10, 2020

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed investment is a local currency denominated syndicated senior loan facility to Transcapital NBFI LLC (the “Company” or “Transcapital”), the largest microfinance institution in Mongolia, and includes (i) a 3-year IFC A loan of MNT equivalent of up to US$3 million; (ii) a 3-year hedged A loan participation of up to US$9 million equivalent. This if IFC’s first engagement with Transcapital. The proposed investment will help the Company to further improve the access to finance for the underserved micro enterprises in Mongolia, especially those in the rural and suburb areas of Mongolia outside of the capital city Ulaanbaatar; in addition to supporting the development of microfinance sector in Mongolia by helping microfinance institutions gain access to mid-term local currency funding and strengthen institutional capacity.

This project or financing is part of IFC's COVID-19 response, as stated on the IFC website. You can find additional information at: https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/covid-19/covid-19-projects.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Transcapital is currently majority-owned by Namsraijav Family in Mongolia, with its top three individual shareholders being family members. Mr. Zorigt Namsraijav is the founder and the largest shareholder of Transcapital. In addition to Transcapital, Mr. ZorigtNamsraijav is also the founder of Tuushin Group LLC, which includes the first freight forwarder in Mongolia, and the Tuushin Hotel, and has introduced Mongolia to international trade and transportation networks. 93% of Transcapital is collectively held by Mr. Zorigt Namsraijav and Mr. Altanzul Zorigt, CEO of Transcapital.     


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Transcapital NBFI LLC
Mr. Altanzul Zorigt
CEO
(976) 11332255
zul@transcapital.mn
Transcapital NBFI LLC, Transcapital Building, Partisan’s Street, Sukhbaatar District, 4th khoroo, Ulaanbaatar, 14250, Mongolia
www.transcapital.mn

 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works