Urumqi TianRong Micro Finance Company Opens Today in Urumqi
First Sino-Mongolia Micro Finance Institution launched during the 2nd EuroAsia Conference
September 3, 2012, Xinjiang – Urumqi Tianrong Microfinance Company hosted its grand opening ceremony in Urumqi today. The company is a joint venture of 5 investors: Tenger Financial Group (TFG) and MAK from Mongolia, Xinjiang Longhaida and Shanghai Junhe from China, and IFC, the member of the World Bank Group focused exclusively on private sector development in emerging economies.
The company will expand access to finance for small businesses in China’s less-developed region of Xinjiang and support economic cooperation in Central Asia. Wang QuanXin, Deputy Director of Financial Affair Office and Cui ChangXiang, General Deputy Director of Commerce Department of Xinjiang Autonomous Region attended the ceremony and gave key note speeches. Representing City government, Director of Urumqi City Financial Affair Office, Feng Zhuo chaired the ceremony.
TFG’s flagship subsidiary XacBank is a leading micro, small and medium enterprises finance provider in Mongolia and a globally recognized microfinance lender. IFC, which has extensive experience in microfinance and supporting small and medium enterprises worldwide, has partnered with TFG and XacBank since 1999 and owns a 13.5 percent stake in the group. With the combined international financial knowledge and experience of its investors, Tianrong is in a unique position to lead in the microfinance sector in Xinjiang and elsewhere in Central Asia.
“Under the partnership with IFC, TFG has built up a sound business and a team of experienced professionals in the microfinance space,” said Bold Magvan, CEO of TenGer Financial Group. “Now we would like to replicate this model and share our lessons in other markets in the region, in Xinjiang, after the pilot investment in Kyrgyzstan in 2009.”
Tianrong currently focuses on micro loans less than 300,000 yuan to support small business owners. As the market condition permits, the company aims to extend loans worth more than $200 million to around 15,000 small businesses in the next couple of years.
“IFC has been actively promoting regional economic collaboration in China and globally,” said Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia. “This project can serve as a model to support harmonious development and win-win cooperation in Xinjiang and across central Asian region.”
According to China’s National Bureau of the Statistics, Xinjiang has among the lowest per capita GDP in the country. Xinjiang is also China’s largest region and borders eight Central Asian states including Mongolia, Russia, Tajikistan, Kyrgyz Republic, and Kazakhstan.
About TenGer Financial Group
TenGer Financial Group is a leading Financial Company in Mongolia. Its shareholders include IFC, EBRD, BlueOchard, etc. The Foreign investors’investment accounts for over 65%. The subsidiaries of TenGer Financial Group are XacBank, XacLeasing, TenGer Insurance, etc. The flagship subsidiary company of TenGer XacBank, is the world leading microfinance bank and ranked number 4 in terms of assets in Mongolia. For more information, visitwww.tengerfinancialgroup.com
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 www.ifc.org.
About Xinjiang Longhaida
Xinjiang Longhaida is a leading retailer and investor in Xinjiang. Longhaida is Tianrong’s key local partner and its portfolio companies include Woyou Electronic, Xinjiang Chaungbo Guarantee, and Badianban Supermarket.
About Shanghai Junhe
Shanghai Junhe, a member of Junhe Group, is a financial holding company covering microfinance, pawnshops and investment services.
MAK is a leading private company in Mongolia. It focuses on mining sector and has partnered with several well-known Chinese companies before.