XacBank the first Mongolian institution to complete project with the EBRD
To mark its 10th year anniversary of Mongolian operations, the European Bank for Reconstruction and Development (EBRD) Vice President and Chief Operations Officer Phil Bennett and other delegates visited XacBank on September 27, 2016. On the occasion of their visit, the bank was certified as the first EBRD project partner in all of Mongolia.
In 2006, EBRD funded XacBank with a USD 5 million for a 4 year period. Since then, the two organizations have worked closely to support thousands of business owners of small and medium-sized enterprises (SME) by paying close attention to the kinds of financial support needed to allow these businesses to thrive.
To support SMEs, XacBank has received USD 49 million financing from EBRD in the past 10 years. Additionally, in order to protect business owners from exchange-rate risk, the bank sourced MNT 40 billion so as to allow for soft terms, which reduce these risks.
Since 2014, XacBank has partnered with EBRD in starting the Monseff program. This program supports organizations and manufacturers dedicated in reducing their energy usage and increasing their renewable capacity so as to lessen greenhouse gas emissions. Through this program, the Bank has financed nine projects equaling more than MNT 10 billion in financing. In aggregate, these projects are now saving 42.6 thousand megawatts of energy per annum and have cut greenhouse emissions by 16.5 thousand tons per year.
EBRD is an international organization financed by the 65 member countries of the European Union and European Investment Bank. Established in 1991, EBRD has financed more than 4,500 projects equaling 110 billion euros to date.
EBRD is one of the main shareholders of Tenger Financial Group, the parent company of XacBank, owning 12.91 percent of the shares.