EBRD organises US$145 million package for Mongolia’s Khan Bank

• EBRD is organising a US$ 145 million financing package for Khan Bank of Mongolia
• Funds to promote climate adaptation technologies and women-led businesses
• Project is supported by Green Climate Fund

The European Bank for Reconstruction and Development (EBRD) is organising a financing package of up to US$ 145 million (€140 million) for Mongolia’s biggest lender, Khan Bank, in what is its largest bilateral transaction with a Mongolian financial institution to date.

The funding will support the introduction of technologies to enable climate adaptation and improve resource efficiency, creating new growth opportunities for small and medium-sized enterprises (SMEs) owned or led by women.

The package consists of a senior loan of up to US$ 75 million (€72.4 million) under the EBRD’s Green Economy Financing Facility (GEFF), of which up to US$ 60 million (€57.9 million) will be provided by the EBRD and up to US$ 15 million (€14.5 million) by the Green Climate Fund (GCF). The GEFF loan, which will improve access to green technologies for Mongolian households and SMEs, will benefit from grant funds provided by the GCF and Japan.

The remaining part of the package, a senior loan of up to US$ 70 million (€67.6million), will be provided under the EBRD’s Central Asian Women in Business programme. The funds will support women’s entrepreneurship by providing access to finance and technical advice.

Khan Bank is a long-term EBRD client that offers financial services to more than 82 per cent of Mongolia’s population through its digital channels and network of 545 branches.

The EBRD has invested almost €2.6 billion in Mongolia’s economy through 154 projects. Approximately 90 per cent of these funds have been used to support private-sector companies.