OPIC, IFC, and XacBank Supporting Women-owned Businesses in Mongolia
June 8, 2017
WASHINGTON – The Overseas Private Investment Corporation (OPIC), IFC (International Finance Corporation), and XacBank LLC today signed a loan agreement to support access to finance in Mongolia for women-owned small and medium sized (SME) businesses.
In Mongolia, while 64 percent of SMEs are women-owned, the majority are underserved or unserved by financial institutions. Through cooperation with XacBank, this commitment seeks to provide the financing needed by women-owned SMEs in the country and offer better financial and business advisory services to women entrepreneurs.
“Women entrepreneurs are critical to economic growth and development in Mongolia. During a time when the majority of women-owned SMEs in Mongolia are underserved or unserved by financial institutions, OPIC is proud to partner with IFC and Xacbank to help these female entrepreneurs gain access to finance and new opportunities,” said Acting OPIC President and CEO Dev Jagadesan.
Marcos Brujis, IFC Director of Financial Institutions Group said, “Strong economic growth cannot be attained without gender equality and the empowerment of one-half of the world’s population. IFC’s Banking on Women program, and partnerships like this with OPIC and XacBank, have a critical role to play in unlocking and financing the vast untapped potential of female entrepreneurs.”
"SMEs constitute a vital part of the economic foundation of Mongolia. XacBank has been a front runner in providing financial solutions to small businesses and entrepreneurs. Together with OPIC and IFC, XacBank is opening new opportunities for SMEs and providing competitive financing opportunities," said Xacbank’s President Amartuvshin Hanibal.
The commitment is part of OPIC’s target goal of providing $100 million in loans to women owned SMEs as part of the Women Entrepreneurs Opportunity Facility (WEOF) by March 2022. WEOF is a Goldman Sachs Foundation and IFC partnership to increase access to capital for women entrepreneurs in emerging markets.
Launched in late 2010, IFC’s Banking on Women business invests in and provides advisory services to financial institutions to scale up and improve financial and non-financial services for women and women-led SMEs globally. Through Banking on Women, IFC has US $1.36 billion in cumulative investment commitments in 43 projects in 24 countries dedicated to financing women SME customers, and has led 33 advisory services projects with financial institutions in 23 countries to scale up financial and non-financial services to women customers.
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
XacBank LLC, one of the largest commercial bank in Mongolia, is setting the standard for corporate governance and social responsibility, while embracing the triple bottom line mission of People, Planet, and Prosperity. With our vision to bring world class financial services to Mongolia, we operate with over 1,300 specialized staff, 86 branches across the country, and over 2,700 merchants, proudly delivering full banking products and services to our 700,000 customers through latest digital channels. For more information, visit www.xacbank.mn