ULAANBAATAR, MONGOLIA (28 February 2023) — Invescore Financial Institution signed a USD 5 million, long-term financing with the European Bank for Reconstruction and Development (EBRD), a multilateral development bank, to be disbursed in local currency (LCY).
The agreement signing ceremony was held at the headquarter of Invescore Financial Institution, marking the official cooperation and partnership between the organizations as, Mr. Ankhbold. B, the Chairman of the Board of Directors of the company and Hannes Takacs, Head of Mongolia at European Bank for Reconstruction and Development signed the agreement.
This long-term financing is Invescore Financial Institution’s very first loan from the EBRD and is a senior, unsecured loan to be provided under the Financial Intermediaries Framework ("FIF"). Invescore Financial Institution believes that the execution of this agreement is a major testimony to its growth and achievement, market expansion capacity, robust financial position, strong corporate governance, and transparency.
The EBRD loan proceeds will be used to support the business activities of micro, small, and medium-sized enterprise (MSME) clients, which are key drivers of Mongolia’s economy, by providing the necessary financing for their future growth. This funding will thereby contribute to Mongolia’s economic development, enabling these businesses to create new jobs.
Since its inception in 2016, Invescore Financial Institution has successfully launched innovative product lines, which majorly brought about breakthrough in the Mongolia’s non-banking financial industry, and implemented good corporate governance and has become an industry leader. Moreover, not only does it operate in Mongolia’s market, but also has expanded its operation into those of Central Asian countries.
Ankhbold Bayanmunkh, Chairman of the Board of Directors, Invescore Financial Institution, commented to the occasion:
“We are pleased to have concluded this project, having successfully signed. This loan financing is crucial in the current environment of foreign reserve depletion and with the financing, we enhance our support for MSME clients with access to their much-needed long-term funding needs, reducing the gap. That Invescore has been supporting MSMEs not only in Mongolia but also in the Central Asia aligns with the EBRD’s mission and mandates in that regard. I hope that the beginning of our cooperation today will expand both in scale and length of time in the future.”
HannesTakacs, Head of Mongolia, European Bank for Reconstruction and Development commented:
“We are delighted that we marked the beginning of our long-term partnership today. I welcome you to our EBRD family upon the trust we have established by having the loan agreement signed. I must emphasize that your focus area and range of services fit perfectly with the mandates of the EBRD, which are to support private sector development, to support women in business, to support micro enterprises and to define outreach of rural area. There is no doubt that the financing we provide will bring a positive impact to Mongolia's economy and to MSMEs. Your international expansion policy and goals to go into Central Asia is very interesting for us as we have a strong involvement in those countries and we are more than happy to support you.”
About Invescore Financial Institution
Having held its IPO in May 2019, Invescore Financial Institution became a public, listed company and is the largest non-bank financial institution in Mongolia in terms of the size of assets. By strictly implementing to risk-based management and leveraging information technology to improve its processes, it has been active in providing financial access to clients from underbanked segment. The company owes much of its sustainable growth and success to its outstanding team with knowledge, experience and solid culture, international standards compliant operations, technology know-how, discipline, and management team with strong business ethic. Invescore Financial Institution actively aims to solidify its leading position in MSME financing solutions market.
About European Bank for Reconstruction and Development
Founded in 1991, the EBRD is a multilateral development bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 71 countries as well as the European Union and the European Investment Bank. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. To date, the EBRD has invested 180 billion EUR through 6,500 projects across three continents. As for the Mongolia’s economy, the EBRD aims to help create a diversified economy in the country by supporting the private sector and improving infrastructure, and has invested a total of USD 2.2 billion in 128 projects to date.