Xac Bank started in 2001 as a nonprofit microfinance lender to Mongolia’s herding community. Today it is a fully regulated commercial bank and the country’s fourth largest in terms of assets, with 500,000 customers in 21 provinces, 97 branches, and US$800 million in total assets as well as being one of the most regarded, transparent and ethical banks in emerging markets to date. ORIX Corporation (‘ORIX’) is the largest leasing company in Japan and third largest player in the Leasing Industry, world-wide. Through their investment in Xac Bank, ORIX will leverage Xac Bank’s business platform to expand within Mongolia and further the development of the country’s financial services industry. Strategic buyers, typically financial services organizations or diversified groups like ORIX, are seeking to reach a new geographies and or serve a new segment, which has turned their interest toward microfinance institutions such as Xac Bank. There are now over 2,000 MFIs operating worldwide serving 105 million borrowers and 70 million savers with total assets over USD 72 billion and growing at a rate of 10% to 20% depending on the region, according to the JP Morgan and CGAP 2012 Global Microfinance Equity Valuation Survey Report.
