Tenger FInancial Group and XacBank Increase Their Share Capital
November 2, 2009. Ulaanbaatar, Mongolia. TenGer Financial Group LLC (TenGer), the holding company of XacBank, is pleased to announce that it has successfully increased its share capital by MNT7.5 billion.
In May 2009, shareholders of TenGer passed a resolution to increase the equity through issuance of new shares. A total of MNT7.5 billion was raised from the existing shareholders and MNT5 billion of this amount injected in XacBank, bringing its capital to MNT33.6 billion. The remaining MNT2.5 billion will be used to capitalize TenGer League Investments, a new international holding company, through which the group is contemplating to implement its regional expansion strategy.
The share subscription process was completed in October and most of TenGer’s existing shareholders including International Finance Corporation (IFC), BlueOrchard Private Equity Fund, Triodos Bank Group of the Netherlands, European Bank for Reconstruction and Development (EBRD) and EIT Capital Management LLC participated in this round of capital call.
The management of TenGer and the Bank strongly believe that this capital injection demonstrates the commitment of shareholders to grow TenGer into an international financial services company by means of strengthening the Bank’s core business in Mongolia and duplicating its success and experience in the region.
Mr. Bold M., Chief Executive Officer of XacBank, remarked “This fresh capital injection significantly enhances the robustness of XacBank and provides a comfortable ground for the Bank in expanding its services to tens of thousands of the Mongolian families and entrepreneurs.”
Founded in 1999, TenGer is a family of companies which includes XacBank, XacLeasing, XacSecurity, and Horus Nomadic Solutions. In 2009, TenGer launched its international expansion, a next phase of institutional development, with a pilot equity investment in Mol Bulak Finance Microcredit Company of the Kyrgyz Republic, and is preparing for investments in financial institutions in Central Asia, Russia and China to build an international group of companies primarily engaged in delivery of microfinance and retail banking.
TenGer is owned by a group of local and international investors including EIT Capital Management LLC, IFC, EBRD, Mercy Corps, Triodos Bank Group, BlueOrchard Private Equity Fund and local NGOs.
XacBank is one of the largest banks in Mongolia providing inclusive and innovative financial products and services throughout the country with a network of 77 branches. Its clientele represents not only the lower-income segment of the market but also a growing number of small and medium size enterprises.