MICROCAPITAL BRIEF: BIO Loans XacLeasing $5m for Leasing Vehicles, Equipment to SMEs in Mongolia

The Brussels-based Belgian Investment Company for Developing Countries (BIO) recently disbursed a loan to XacLeasing, a subsidiary of Mongolia-based TenGer Financial Group, in the amount of USD 5 million to expand its leasing services for small and medium-sized enterprises (SMEs) to acquire vehicles and equipment for medical services, agriculture, manufacturing, mining and road construction.

In addition to leasing, TenGer Financial has units offering banking, insurance, software and security services. Its shareholders include the Mongolyn Alt Corporation, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD). TenGer Financial’s largest member is XacBank, which reports USD 1.3 billion in total assets, a gross loan portfolio of USD 580 million, deposits of USD 530 million and 100,000 customers as of 2017.

Established in 2001, BIO is a government-backed organization aiming to support a “strong private sector in developing countries, to enable them to gain access to growth and sustainable development within the framework of the [UN’s] Sustainable Development Goals.” As of 2017, it has total assets of EUR 887 million (USD 1.0 billion).

By Michelle Fleming, Research Assistant

Sources and Additional Resources

BIO article
http://www.bio-invest.be/en/portfolio/asia/details/156.html

BIO homepage
http://www.bio-invest.be/

MIX profile on XacBank
https://www.themix.org/mixmarket/profiles/xacbank

XacLeasing homepage
http://xacleasing.mn/

TenGer Financial Group homepage
http://tengerfinancialgroup.com

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