Mayer Brown JSM and Allen & Overy have advised on XacBank LLC’s establishment of a US$300 million Euro Medium Term Note programme.

XacBank is one of the country’s leading commercial bank and arguably the pre-eminent provider of microfinance and community lending services in Mongolia. It provides a broad range of products including microbusiness loans, consumer, SME, agricultural and mortgage loans as well as other retail banking services. As of April 2011, XacBank had 86 branches across Mongolia.

A Mayer Brown JSM team led by Hong Kong-based partner Jason Elder acted as English law counsel to XacBank. The issue’s dealers, ING and UBS, were advised by Allen & Overy. For advice on Mongolian law, the dealers turned to local heavyweight, GTs Advocates.

Elder said the transaction represents a significant step not only for XacBank— offering it the possibility to expand its funding sources— but also for the country’s capital markets.

"Mongolian issuers are growing and recognise the benefits of accessing international markets for their capital raising needs,” Elder said.

Bat-Ochir Dugersuren, XacBank’s CEO said the MTN program will allow the bank to extend its footprint in the country’s fast-growing SME sector.

“In recent years, we have leveraged our extensive microfinance experience to broaden our presence in SME business sector, in line with economic development in Mongolia. The Programme will enable us to diversify our funding sources, and play an important role in the future development of XacBank,” he said.