Ulaanbaatar
ADB and Invescore Sign USD 10 Million Loan to Boost MSME Growth in Mongolia
Economy
Ulaanbaatar, June 16, 2023 /MONTSAME/. The Asian Development Bank (ADB) and Invescore NBFI JSC have signed a USD 10 million loan to support job creation and sustainable development in Mongolia by helping improve access to finance for micro, small, and medium-sized enterprises (MSMEs).
The financial package comprises USD 5 million from ADB’s ordinary capital resources and a further USD 5 million in B-loans with ADB as the lender on record. A portion of the USD 5 million A-loan from ADB is expected to be disbursed in togrog. At least 30 percent of the funds are earmarked for women-owned MSMEs.
“MSMEs play a vital economic role in Mongolia, but they find it hard to access credit so they can invest in their growth and make an even greater contribution,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “By supporting Mongolia’s nonbank financial institution (NBFI) sector, ADB’s assistance will help to improve access to finance for these businesses, and support job creation and inclusive growth in the country.”
MSMEs have a critical role in the sustainable development of Mongolia’s economy, employing 72 percent of the workforce and accounting for 18% of gross domestic product. Their potential to generate even more jobs and wealth is hamstrung by limited access to finance. ADB’s loan to Invescore, its first direct loan to an NBFI in Mongolia, will help improve the company’s funding profile and support its expansion of finance to MSMEs, especially those run by women.
“As a leader in the nonbanking sector, we aspire to lead by example, operating responsibly and promoting sustainable finance by supporting socially and environmentally responsible customers,” said Invescore NBFI Chief Executive Officer Bayasgalan Dalaijamts. “Aligned with our aspiration, I am very much delighted and looking forward that Invescore will be contributing to the development of MSMEs in Mongolia with the financing and assistance from ADB.”
Invescore was established in 2016 and became the largest NBFI in Mongolia. As of the end of 2022, the company has total assets of MNT 356.3 billion, with 15 branches in the capital Ulaanbaatar and 1 in the city of Erdenet in northern Mongolia.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source: ADB
