XacBank and TFG Welcome a Strategic Investor
Mongolia’s XacBank LLC announces that National Bank of Canada (“NBC”) became its new shareholder. The investment in XacBank was made through the holding company of XacBank - TenGer Financial Group (“TFG” or the “Group”). NBC’s investment in XacBank and TFG is the first investment by a foreign commercial bank in the financial sector of Mongolia.
The Bank of Mongolia (Central Bank) and the Office of the Superintendent of Financial Institutions (“OSFI”) of Canada have issued their respective regulatory approvals endorsing this investment. NBC will own 10.516 percent of TFG’s shares.
“XacBank is known for its financial soundness, good governance standards and risk management.” said Karen Leggett, Chief Marketing Officer and Executive Vice-President – Corporate Development of National Bank of Canada. “We are pleased to be welcomed as a partner and have the opportunity to use our expertise and resources to contribute to its development.”
“XacBank continues to strengthen its diverse and balanced shareholding structure combining international reputable investors as well as Mongolian business representations which is the driving force of good governance and institutional capacity of the Mongolian financial industry” said Ganbold Chuluun, Chairman of the Boards of Directors of XacBank and TFG. “Mongolia is a land of opportunities and is a fast learning nation. With right partners and right mood, we are destined to be a success” said Bold Magvan, CEO of XacBank and TFG.
Moody’s views National Bank of Canada as a strategic investor of considerable financial strength and rates its acquisition of TFG’s shares as credit positive for XacBank.
NBC’s entry in the financial sector of Mongolia sets a positive note in the overall current slowdown and is largely regarded as a solid vote of confidence in the future of Mongolia.
National Bank of Canada (www.nbc.ca), together with its subsidiaries form one of Canada’s leading integrated financial groups. With 20,000 employees, NBC provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services elsewhere in the world.
XacBank is the largest subsidiary of TenGer Financial Group companies providing fair access to broad financial services. XacBank is the fourth largest bank in Mongolia. Please visit the websites www.xacbank.mn and www.tengerfinancialgroup.com for information about XacBank and TenGer Financial Group.