FMO, the Dutch entrepreneurial development bank, has successfully arranged a USD 150 million syndicated A/B term loan facility for XacBank JSC, one of Mongolia’s leading universal banks. The transaction marks a significant step in expanding access to sustainable finance and supporting inclusive economic growth across the country.

The facility is structured with a strong development focus. Twenty percent of the proceeds will be allocated to green projects, supporting investments that contribute to climate resilience and environmental sustainability. The remaining 80 percent will be directed toward women, youth, agricultural SMEs, and microenterprises, with a particular emphasis on rural areas where access to finance remains limited.

FMO acted as lead arranger, agent, and lender, mobilizing capital from both private investors and development finance institutions. As part of the transaction, Cassa Depositi e Prestiti (CDP), the Italian Development Bank, joined as a parallel A-lender. The B-loan tranche includes a diverse group of international partners, such as ILX Funds, Nations Trust Bank, BlueOrchard Microfinance Fund, Responsibility-managed financial inclusion funds, Global Climate Partnership Fund, and Atlantic Forfaiting. The facility comprises 3-year and 5-year tranches and is among the largest syndicated financings arranged by FMO for XacBank.

XacBank has been an FMO client since 2007 and is currently Mongolia’s fourth-largest commercial bank, serving more than one million customers, equivalent to around 30 percent of the population. The bank is widely recognized for its leadership in financial inclusion, MSME lending, and green finance, and is an accredited entity of the Green Climate Fund as well as a key participant in the Mongolian Sustainable Finance Initiative.

Mongolia’s economy continues to face structural challenges linked to its geographic conditions, climate risks, and reliance on mining exports. While GDP growth is projected at 6.5 percent in 2025, rural livelihoods and agriculture remain particularly vulnerable to climate change and external shocks. In this context, expanding access to finance for MSMEs and accelerating green investment are essential to building long-term economic resilience.

The new syndicated facility underscores the role of international development finance in supporting Mongolia’s transition toward a more sustainable, inclusive, and climate-resilient economy, while strengthening XacBank’s capacity to deliver impact-driven finance nationwide.