Xac Leasing

Debt : October 2012 - January 2018

Xacleasing is a leasing company established in 2007 in Mongolia.

Amount

€ 3,865,000.00

Type of investment

Debt

Development impacts

Local economic growth
Private sector consolidation/innovation
Financial inclusion

Beneficiary locations

Asia: Mongolia

Investment field

Financial Institutions

Activity

Non-bank financial institutions - Leasing

Organisation

Xac Leasing

Website

https://xacleasing.mn/

Domicile

Mongolia

More investments in

Xac Leasing

Subsidy € 20,516.10 (2018)
Debt € 4,333,800.00 (2018)

XacLeasing is a recognized leasing service provider in Mongolia, with a focus on low to mid income population and SMEs. The Company is active in many economic sectors, supplying leasing finance for a wide range of suppliers and brands of vehicles, trucks and industrial equipment. It has currently one branch and headquarters in Ulaanbaatar, and 90% of its business originates from the capital. 75% of the goods financed are represented by rolling material; the rest consists of IT, health and industrial equipment. The recent growth in imported assets, which is expected to continue unabated over the medium term, represents a sizeable opportunity for XacLeasing and its peers. The government’s support to SMEs, through investment and financing incentives such as VAT exemptions on certain assets, should represent an additional opportunity.

Development impacts

Local economic growth
XacLeasing has a dedicated focus on financial leasing to SMEs

Microleasing (leases < USD 10,000) is a new activity being pursued by XacLeasing
Private sector consolidation/innovation
Priority of TenGer Financial Group and the new CEO, with the support of lenders including BIO through TA; TA grant of BIO to support leasing best practices, risk management

Leasing is relatively common, but XacLeasing is among the first independent leasing companies launched in the country, with a dedicated focus on SMEs

Measured by portfolio size, XacLeasing currently has a 9% share of the total leasing market. The Company intends to progressively grow its market share to 20%, by developing these channels further through collaboration with captive leasing companies
Financial inclusion
Financial leasing is also available for low to mid income population