Ulaanbaatar, May 29, 2013—
IFC, a member of the World Bank Group, signed an investment agreement last week with Mongolia’s TenGer Financial Group and two advisory agreements with its flagship subsidiary, XacBank, to expand financing to more women businesses and sustainable-energy projects.
The investment agreement will increase IFC’s equity stake in TenGer Financial Group to 19 percent from 15 percent, while the advisory agreements will strengthen XacBank’s capacity to serve smaller enterprises – many of which are run by women – and support climate-friendly energy projects in Mongolia as the country undergoes rapid economic development that would lead to increased energy consumption and greenhouse-gas emissions.
The sustainable energy financing agreement is forecast to reduce greenhouse-gas emissions by 37,000 tons of carbon dioxide equivalent per year and mobilize at least $40 million worth of loans to finance energy-efficiency and renewable-energy projects in Mongolia.
“We have a long relationship with IFC and its expertise continues to help our bank adapt to market changes and boost our competitive edge,” said Bold Magvan, chief executive officer of TenGer Financial Group. “The latest agreements will help us further improve our business portfolio and expand our lending to women-led businesses and climate-friendly projects.”
Resource-rich Mongolia is one of the world’s fastest-growing economies. According to the World Bank, the country’s economy grew 12.3 percent in 2012 and is expected to maintain double-digit growth for the coming years. Such rapid economic development could have a negative impact on climate change and leave little room for smaller enterprises, particularly those run by women, to grow.
IFC has been working with TenGer Financial Group and its subsidiaries since 1999 and became a shareholder of the company in 2008. IFC and TenGer Financial Group jointly established a micro-credit company in western China to help expand access to finance to micro and small Chinese businesses.
“IFC is committed to Mongolia’s sustainable development,” said Hyun-Chan Cho, IFC’s country manager for China, Mongolia and Korea. “Our continued partnership with TenGer Financial Group and XacBank showcases that promoting gender equality and sustainability is smart for business.”
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit