International Finance Corporation (IFC), a member of the World Bank Group, has provided Transcapital NBFI with an innovative local currency financing package. Over the next three years, this funding is expected to reach approximately 15,000 women entrepreneurs, micro, and rural businesses.
This loan is part of IFC’s broader efforts to support the financial sector during the COVID-19 pandemic. The package includes:
- MNT 8.4 billion (approximately USD 3 million) from IFC’s own account as a 3-year loan, and
- MNT 25.2 billion (approximately USD 9 million) in co-financing from partners including Invest in Visions GmbH (with participation from Agents for Impact GmbH & Co. KG), BlueOrchard Finance Ltd. (Asia Microfinance Initiative), ACTIAM, and Developing World Markets.
“Micro, small, and medium enterprises (MSMEs) are the backbone of Mongolia’s economy, providing over 50% of total employment, yet they have been among the most affected by COVID-19,” said Altanzul.Z, CEO of Transcapital.
“Through this innovative IFC financing, we are expanding our support to MSMEs and contributing to national efforts to recover from the pandemic.”
In Mongolia, nearly 90% of MSMEs lack regular access to bank financing, with an estimated USD 1.29 billion financing gap in the sector. The ongoing impact of the pandemic, combined with declining global demand and commodity prices, continues to place additional pressure on businesses in Mongolia’s resource-dependent economy.
“This innovative investment is designed to address key challenges faced by entrepreneurs in Mongolia, especially rural microbusinesses and women entrepreneurs,” said Rufat Alimardanov, IFC Resident Representative for Mongolia.
“This is IFC’s first investment in a non-bank financial institution in Mongolia and also the first local currency co-financing loan. It reflects our commitment to helping Mongolian businesses recover from the impact of COVID-19.”
IFC is strengthening its support for Mongolia’s financial sector to enhance stability, product diversity, and financial inclusion, particularly for MSMEs. Earlier in the year, IFC signed an agreement with regulators and the banking association to develop supply chain finance solutions and increased credit lines to partner banks to support pandemic response efforts.
About IFC
The International Finance Corporation (IFC) is the largest global development institution focused on the private sector in emerging markets. Operating in more than 100 countries, IFC uses its capital, expertise, and influence to create markets and opportunities.
In FY2020, IFC invested USD 22 billion in private companies and financial institutions in developing countries, supporting efforts to end extreme poverty and promote shared prosperity.
For more information: www.ifc.org
About Transcapital
Transcapital NBFI is one of Mongolia’s leading non-bank financial institutions, operating through 35 branches nationwide since 2001.
Through strong domestic and international partnerships, Transcapital supports the development of MSMEs, particularly in ger districts and rural areas, helping create jobs and new business opportunities. In addition to financing, the company provides financial advisory services and training to support its clients’ growth and sustainability.
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