MNT 5 bn capital injected into Mongolian microfinance “XacBank”

Microfinance Focus, Nov 09, 2009: TenGer Financial Group LLC (TenGer), the holding company of XacBank, successfully increased its share capital by MNT 7.5 billion. A total of MNT 7.5 billion was raised from the existing shareholders and MNT 5 billion of this amount injected in XacBank, bringing its capital to MNT33.6 billion, said in an official release.

XacBank based out of Ulaanbaatar, Mongolia, is a microfinance institution and community development bank that was formed in December 2001. XacBank is one of the largest banks in Mongolia providing inclusive and innovative financial products and services throughout the country with a network of 77 branches.

In May 2009, shareholders of TenGer passed a resolution to increase the equity through issuance of new shares. The share subscription process was completed in October and most of TenGer’s existing shareholders including International Finance Corporation (IFC), BlueOrchard Private Equity Fund, Triodos Bank Group of the Netherlands, European Bank for Reconstruction and Development (EBRD) and EIT Capital Management LLC participated in this round of capital call.

Mr. Bold M., Chief Executive Officer of XacBank, remarked “This fresh capital injection significantly enhances the robustness of XacBank and provides a comfortable ground for the Bank in expanding its services to tens of thousands of the Mongolian families and entrepreneurs.”

Founded in 1999, TenGer is a family of companies which includes XacBank, XacLeasing, XacSecurity, and Horus Nomadic Solutions. TenGer is owned by a group of local and international investors including EIT Capital Management LLC, IFC, EBRD, Mercy Corps, Triodos Bank Group, BlueOrchard Private Equity Fund and local NGOs.

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MNT: Mongolian Tugrik, Mongolian Tugrik is the currency in Mongolia (MN, MNG).

Exchange rate: Live rates at 2009.11.09 13:19:23 UTC (Xe.com)

1.00 USD = 1,420.50 MNT | 1 MNT = 0.000703977 USD

Source:www.microfinancefocus.com