Khan Bank is the largest commercial lender in Mongolia
- EBRD is lending US$ 20 million to Mongolia’s Khan Bank
- US$ 10 million will support green lending under GEFF
- The other US$ 10 million will promote women entrepreneurship
The European Bank for Reconstruction and Development (EBRD) is promoting green and inclusive lending in Mongolia by offering funds of up to US$ 20 million (€18.4 million) to the country’s largest commercial lender, Khan Bank.
The financial package consists of a US$ 10 million (€9.2 million) facility under the EBRD’s Green Economy Financing Facility for Mongolia (GEFF Mongolia), launched last year by the EBRD and the Green Climate Fund (GCF) and designed to facilitate better access to green technologies for private companies and local households, and promote higher energy efficiency standards. It will include a US$ 7.5 million loan on the EBRD’s own account and a US$ 2.5 million loan provided by the GCF.
The second component of the package is a US$ 10 million (€9.2 million) loan under the EBRD’s Women in Business (WiB) programme for Central Asia. It will help promote women’s entrepreneurship and business activity. Up to US$ 5 million of this amount will be earmarked for investments in digital solutions. Women entrepreneurs will also be able to improve professional skills through specialised training offered in the context of the WiB programme.
The GEFF is supported by concessional co-financing from the GCF and technical assistance funded by the GCF and the government of Japan.
As of May 2024 the EBRD had invested more than €2.3 billion in Mongolia’s economy through 140 projects. Around 90 per cent of these funds have been channelled to support private sector companies.
