IFC plans $12m local currency loan to Mongolia’s Transcapital

IFC/World Bank HQ. Photo: IFC

International Finance Corporation (IFC) is considering a proposal to extend a local currency-denominated syndicated senior loan facility, equivalent to $12 million, to Mongolian microfinance firm Transcapital.

The financing will be IFC’s first investment through a local currency linked instrument in Mongolia and its first engagement with a non-banking finance institution in the country, IFC said in a disclosure.

The proposed investment will help Transcapital strengthen access to finance for the underserved individuals and micro-enterprises in Mongolia, especially women and those in the rural and suburb areas outside of the capital city Ulaanbaatar, the development finance institution said.

The project is also expected to support the development of the microfinance sector in Mongolia by helping microfinance institutions gain access to mid-term local currency funding and strengthening institutional capacity. IFC said it will also help Transcapital mobilise loans from international investors.

“Such funding is expected to be further curtailed given the impact of the ongoing COVID-19 crisis on global markets and on the Mongolian economy,” it added.

Transcapital is the largest microfinance institution in Mongolia, according to the World Bank Group unit.

The firm is majority-owned by the Namsraijav family in Mongolia. Zorigt Namsraijav, founder of Transcapital, and its CEO Altanzul Zorigt collectively hold 93 per cent of the company.

In addition to Transcapital, Zorigt Namsraijav is also the founder of Tuushin Group, which operates the first freight forwarder in Mongolia and the Tuushin Hotel.

IFC says in a paper on its investment in Mongolia that it is engaged with all key sectors of the local economy, from financial services and agribusiness to infrastructure and sustainable mining.

Since IFC first opened its office in Ulaanbaatar in 1997, it has invested and mobilised more than $470 million.

IFC’s other investment in the financial sector in Mongolia is Khan Bank, the country’s largest lender. It recently extended a $70-million bond and debt package to the lender.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.