Ulaanbaatar, Mongolia, June 24, 2009—
IFC, a member of the World Bank Group, and XacLeasing LLC have signed an investment agreement to support financial leasing services to micro, small, and medium enterprises in Mongolia.
Under the agreement, IFC will provide a $1 million, six-year loan and advisory services to XacLeasing, one of the first financial leasing companies with a mandate to support MSME commercial leasing in Mongolia.
“This investment from IFC will provide important support for the growth of XacLeasing and deepen our institutional capacities,” said Bolormaa Gansuh, CEO of XacLeasing. “It is a real vote of confidence in our company when financial markets have been significantly affected by the global crisis and the slowdown in the Mongolian economy. We truly appreciate IFC’s assistance at this time.”
Equipment leasing is an effective means of providing micro, small, and medium enterprises with longer term financing. IFC is drawing on its global experience in leasing and support for MSMEs in making the investment and providing advisory services. IFC has been a partner of XacBank, the sister company of XacLeasing, for eight years, and has a high level of satisfaction with the professional management, effective strategy, and prudent policies of XacBank.
“We are pleased to make this long-term investment in XacLeasing,” said Michael Ipson, IFC Country Manager for Mongolia. “Micro, small, and medium enterprises are an engine of growth, and financing their acquisition of equipment will increase their productive capacity and create new jobs. IFC assisted in the drafting of the leasing law, and this investment is a natural follow-up to that effort.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About XacLeasing
XacLeasing LLC, was established in May 2007, with 100 percent investment of TenGer Financial Group. The company’s mission is to increase the competitiveness of Mongolian businesses by providing access to leasing services which will introduce new technologies and know how, leading to higher productivity and employment generation. For more information, visit
www.xacleasing.mn
.
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