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Supporting SMEs and green projects in Mongolia with Khan Bank
Project
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Signature date
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Location
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Mongolia
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Financing tool
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Financing amount (Euro)
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22045745
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Financing details
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USD 26,029,412 loan
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Customer
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Khan Bank LLC
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Type of customer
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Financial institution
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Country of headquarters
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Mongolia
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Project number
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PMN1013
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Environmental and social ranking
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B
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
This loan will allow Mongolia’s main bank for SMEs and individuals to develop its SME portfolio by contributing significantly to financing green projects.
Client presentation
Khan Bank is the largest commercial bank in Mongolia. It is also a leading digital bank on Mongolia’s financial market. With some 550 branches in the country, Khan Bank provides banking services and access to comprehensive financing for individuals, SMEs and large companies in almost all of the urban and remote areas of Mongolia, thereby reaching about 80% of households.
Project description
Proparco is participating in the USD 120m facility allocated to Khan Bank, the leading universal bank in Mongolia. DEG, IIB (International Investment Bank) and Atlantic Forfaitierungs AG are contributing to this loan syndicated by FMO. The project aims to contribute to the stability of Khan Bank’s financing by helping it develop its SME and green project portfolio.
Project impact
The project will support the economic development of the country, employment (over 14,000 jobs maintained over the next 5 years) and growth in SME business.
On the environmental front, part of the credit line will be earmarked to finance green projects (USD 24m), including projects with climate co-benefits.
The project will thereby contribute to SDG 8 (“Decent work and economic growth”) and SDG 13 (“Climate action”).