The volatility in the global financial markets following the U.S. credit rating downgrade and the eurozone debt crisis has put the spotlight on the need to strengthen financial institutions in emerging markets to withstand such pressures.
IFC’s $5 million loan to XacBank LLC in 2010 has helped the bank boost its capital and extend financing to more than 3,000 Mongolian small and medium enterprises, supporting jobs and stimulating economic growth.
IFC seeks to provide equity and loan financing to private enterprises across all sectors in Mongolia, particularly in consumer goods and services, transportation and logistics, financial services, real estate and property management, and construction materials. We offer integrated products that combine financing with expert advice – maximizing returns and social benefits, minimizing environmental footprints, and contributing to Mongolia’s long-term economic development.
Increasing Access to Finance IFC provides equity, loans, and trade financing to Mongolian banks to help them increase capital and boost lending to more than 5,000 small and medium enterprises. Together with the European Bank for Reconstruction and Development, IFC invested $7.5 million in the first Mongolian private equity fund for small and medium businesses. Our advisory services help promote a stronger domestic financial market. We advise banks on developing trade and housing finance and mobile banking, among other products. We work with the government on new regulations and reforms that improve access to funding for small and medium businesses. Going forward, IFC seeks to make strategic investments in insurance, investment banking, and leasing.
Growing Strong Industries IFC supports the development of Mongolian industries by directly investing in companies with high growth potential, helping create jobs and raise incomes. IFC has invested $30 million in MCS Holding Limited, one of the country’s largest conglomerates, to develop its consumer goods, manufacturing, and property development operations. We also provide advice to companies on best governance practices and international social and environmental standards to increase their competitiveness.
IFC continues to pursue new investment opportunities, mostly in small and medium firms in the agribusiness, logistics, retail, building materials, and manufacturing sectors.
Sustainable Mining Given mining’s key role in Mongolia’s economic development, IFC is supporting an international consortium in assessing financing of the Oyu Tolgoi copper-gold mining complex – one of the largest in the world. Together with the government, IFC is working toward a sustainable development of the resource sector, benefiting investors, local communities, and protecting the environment.
Building Infrastructure for the Future Mongolia’s infrastructure is in urgent need of modernization. IFC invests in sectors such as transportation, clean and renewable energy, and cement manufacturing. These projects improve community welfare and create jobs while yielding profits for investors.
We stand ready to advise the private sector and the government on structuring and executing infrastructure projects with public and private participation. Such partnerships are vital to increasing efficiencies for businesses and ensuring sustainable urbanization.
Promoting a Business-Friendly Mongolia IFC has significantly increased its advisory services in Mongolia, raising more than $2.5 million for projects that improve Mongolia’s business climate and attract new investments. These projects include simplifying business inspections and improving corporate governance practices.