Under this project, FMO provides a senior loan to Xac, to support the micro, small and medium enterprises (“MSMEs”) in the country.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
Since its founding in 2001, XacBank has created sustainable growth in the banking and financial sector of Mongolia, continuously expanding operations, and has become one of the largest systemic banks.
Established in 2001 Xac is Mongolia’s fourth largest bank measured by total assets. The bank is leading in (FMO supported) sector initiatives like the Mongolia Sustainable Finance Initiative, the Green Credit Fund and the Mongolian Bankers Association. FMO has a financing relationship with Xac since 2007.