Source: XacBank.
Original press release available online.
ULAANBAATAR, Mongolia, September 24 – TenGer Financial Group LLC (TenGer), the holding company of XacBank, is pleased to announce that BlueOrchard Private Equity Fund, a Luxembourg-based private equity fund acquired 14.51 percent of shares of TenGer from one of the existing shareholders.
The management of the Group and the Bank are confident that this equity investment by the new international investor will strengthen the strategy of the Group to become a full pledged financial services corporation in Mongolia and to expand cross-border in Eurasia. The Group is in the middle of an effort to increase its capital due to its expansion plans and higher than anticipated growth in the Bank in Mongolia.
BlueOrchard Private Equity Fund is a limited partnership registered in Luxembourg, managed by BlueOrchard Investments, a new company of the BlueOrchard Group, operating separately from BlueOrchard Finance (fixed income business), with its own specialized staff and independent investment decision making process. As of 31 December 2008, total assets of the Fund reached USD 131.1 million, of which 80 percent came from European and US institutional investors and 20 percent from individual investors. The Fund has a global geographic scope and a diversified investment strategy. The main focus is to work with leading regulated, fast growing microfinance banks through direct participations in their capital or through the creation of regional holding companies, in order to facilitate acquisitions and cross-border expansion.
Ms. Sarah Djari, Investment Manager Asia at BlueOrchard, serves as a member of the Board of Directors of TenGer and XacBank. She has 8-year working experience in strategy and organizational consulting, consulting for microfinance institutions and investments. She previously worked as a senior consultant in Bain and Company and a Head of the Microfinance Strategy Unit of Center for Microfinance at ICICI.
Founded in 1999, TenGer is a family of companies, namely XacBank, XacLeasing, XacSecurity, and Horus Nomadic Solutions, built to provide banking, leasing, security and technology related product development. In 2009, TenGer launched its international expansion, a next phase of institutional development, with a pilot equity investment in Mol Bulak Finance Microcredit Company of the Kyrgyz Republic, and is preparing for investments in financial institutions in Central Asia, Russia and China to build an international group of companies primarily engaged in delivery of microfinance.
TenGer is owned by a group of local and international investors including ECM, IFC, EBRD, Mercy Corps, Triodos Bank Group and local NGOs.
XacBank is the fourth largest bank in Mongolia providing inclusive and innovative financial products and services throughout the country with a network of 74 branches. Its clientele represents not only the lower-income segment of the market but also a growing number of small and medium size enterprises.
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