ADB and Investcore sign $10m loan to boost SME growth in Mongolia – Asia News

2023-06-16 04:25:44

The Asian Development Bank (ADB) and Invescore NBFI JSC have signed a $10 million loan to support job creation and sustainable development in Mongolia, helping to improve access to finance for micro, small and medium-sized enterprises (SMEs).

The financing package comprises $5 million from ADB’s regular capital resources and a further $5 million in B loans with ADB as lender of record. A portion of the $5 million ADB A-loan is expected to be disbursed in togrog. At least 30% of the funds will go to women-owned MSMEs.

“MSMEs play a vital economic role in Mongolia, but find it difficult to access credit to be able to invest in their growth and make an even greater contribution,” said ADB Director General for Private Sector Operations Suzanne Gaboury.

“By supporting Mongolia’s non-bank financial institution (NBFI) sector, ADB assistance will help improve access to finance for non-bank financial institutions (NBFIs) and support job creation and inclusive growth in the country.”

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MSMEs play a key role in the sustainable development of the Mongolian economy, employing 72% of the workforce and accounting for 18% of the gross domestic product. Their potential to generate even more jobs and wealth is hampered by limited access to finance.

The ADB loan to Invescore, its first direct loan to a non-bank institution in Mongolia, will help improve the company’s financing profile and support its expansion of financing to MSMEs, especially those led by women.

“As a leader in the non-bank sector, we aspire to lead by example, operating responsibly and promoting sustainable finance by supporting socially and environmentally responsible clients,” said Bayasgalan Dalaijamts, Chief Executive Officer of Invescore NBFI.

“Aligned with our aspiration, I am very delighted and looking forward to Invescore contributing to the development of MSMEs in Mongolia with funding and assistance from ADB.”

Invescore was established in 2016 and became the largest NBFI in Mongolia. As of the end of 2022, the company had total assets of 356.3 billion togrog, with 15 branches in the capital Ulaanbaatar and 1 in the city of Erdenet in northern Mongolia.