OPIC Signs Commitment with XacBank to Support Women-owned SMEs in Mongolia through Goldman Sachs 10,000 Women and IFC Partnership

(OPIC) WASHINGTON – The Overseas Private Investment Corporation (OPIC) has signed a commitment with XacBank LLC, a leading commercial bank in Mongolia, to support access to finance for women-owned small and medium sized (SME) businesses in Mongolia as part of an IFC-led syndication.

OPIC signed a commitment to provide $49 million in financing to XacBank as part of the Women Entrepreneurs Opportunity Facility, a joint partnership between Goldman Sachs 10,000 Women and IFC’s Banking on Women program to increase access to capital for up to 100,000 women entrepreneurs.

In Mongolia, while 64 percent of SMEs are women-owned, the majority are underserved or unserved by financial institutions. SMEs in Mongolia face higher interest rates, fees, and collateral requirements compared to other Asian SMEs. Women-owned SMEs in particular have demonstrated lower levels of borrowing, which has inhibited growth.

An IFC survey of Mongolian SMEs revealed that access to finance is the primary obstacle faced by Mongolian SMEs in establishing and growing their businesses. While 98 percent of SMEs surveyed by the IFC expressed an interest in receiving financing, only 50 percent of SMEs have been able to access financing.

This will loan be used to provide women-owned businesses access to finance to expand their businesses. The project will leverage Goldman Sachs 10,000 Women and IFC’s joint Women Entrepreneurs Opportunity Facility (WEOF) to promote access to finance and financial literacy of women-owned businesses in developing countries.