MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $1.6m in Chinese-Mongolian Microcredit Company Urumqi Tianrong

International Finance Corporation (IFC), the private-investment arm of the World Bank Group, is making a CNY 10 million (USD 1.6 million) equity investment in Urumqi Tianrong Microcredit Company, a joint venture of Mongolia-based TenGer Financial Group (TFG), IFC and three unidentified investors from China and Mongolia. The amount of investment committed by TenGer and the other investors has not been disclosed. With its first branch opening in fall in the Xinjiang region of northwest China, Urumqi Tianrong aims to provide loans worth more than USD 200 million to 15,000 small businesses in the next two years.

Since 1999 IFC has been a partner of XacBank, a subsidiary of TenGer Financial Group (TFG) and a lender to micro-, small and medium-sized enterprises in Mongolia. IFC holds a 13.5-percent stake in the group. As of 2011, International Finance Corporation (IFC) has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

By Mihaela Grindeanu, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

About TenGer Financial Group (TFG): TenGer Financial Group (TFG) is a family of companies endeavouring to provide equitable access to inclusive financial services. Founded in 1999, it includes XacBank, XacLeasing, XacSecurity, TenGer Solutions and TenGer Insurance. In 2009, TFG launched its international expansion and is preparing for investments in financial institutions in Central Asia, Russia and China that are primarily engaged in delivery of microfinance and retail banking. In 2011, TFG reported total assets of MNT 838 million (USD 635.5 million). The group’s annual net profit amounted to MNT 12.7 million (USD 9.6 million).

Sources and Additional Resources:

Theasset.com: “IFC invests in first Sino-Mongolian microfinance project”, http://www.theasset.com/article/22012.html

MicroCapital.org story, May 30, 2012: “MICROCAPITAL BRIEF: International Finance Corporation, BNP Paribas to Loan $25m to Vietnam’s Orient Commercial Joint Stock Bank for Small and Medium-sized Enterprises, Women-owned Businesses”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-bnp-paribas-to-loan-25m-to-vietnams-orient-commercial-joint-stock-bank-for-small-and-medium-sized-enterprises-women-owned-businesses/

MicroCapital.org story, May 1, 2012: “MICROCAPITAL BRIEF: Citi to Buy 1.1m Tons of Carbon Credits from MicroEnergy Credits, Offsetting Cost of Efficient Heaters Financed by Mongolian Microfinance Institution XacBank”, https://www.microcapital.org/microcapital-brief-citi-to-buy-1-1m-tons-of-carbon-credits-from-microenergy-credits-offsetting-cost-of-efficient-heaters-financed-by-mongolian-microfinance-institution-xacbank/

MicroCapital Universe Profile: About International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: TenGer Financial Group (TFG), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=TenGer+Financial+Group

MicroCapital Universe Profile: XacBank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=XacBank

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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