FIF - Khan Bank VCF Loan

Country:

Mongolia

Project number:

49388

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

18 Jul 2017

Status:

Board Approved

PSD disclosed:

13 Jun 2017

Translated version of this PSD: Mongolian

Project Description

A senior Value Chain Financing ("VCF") loan to Khan Bank of up to USD 15 million under the Financial Intermediary Framework ("FIF") for financing private MSME clients in Mongolia.

Project Objectives

The Project will channel long-term funding through one of the leading Mongolian banks to local MSMEs that are part of value chains with larger counterparties and thus will not only improve MSME access to finance but have a comprehensive impact by improving the integration and resilience of the economy.

Transition Impact

The Project supports Khan Bank's lending to private MSMEs in Mongolia by a multiple of EBRD's funding and focuses on maintaining Khan Bank's regional penetration and attraction of new MSME clients, which will ultimately promote the competitiveness of the local economy.

Client Information

KHAN BANK LLC

Khan Bank is one of the largest commercial banks in Mongolia by total assets and loan portfolio with a market share of 26.1% and 27.4% respectively. The bank has a universal focus and a nationwide presence through more than 530 offices.

EBRD Finance Summary

USD 15,000,000.00

Total Project Cost

USD 15,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014). Khan Bank is an existing client of the Bank and has adopted an Environmental Policy and Environmental and Social Procedures that largely satisfy requirements of Performance Requirements 2, 4 and 9. Khan Bank will need to apply their environmental and social procedures to all sub-loans funded out of EBRD funds, and ensure that sub-borrowers comply with national requirements for environment, health and safety and labour standards. Khan Bank will need to ensure an ongoing compliance with PRs 2, 4 and 9 and submit satisfactory annual environmental and social reports.

Technical Cooperation

It is envisaged that the Project would be supported by technical cooperation to assist Khan Bank in the effort to strengthen the MSME lending capacity, through advice and assistance in implementation of measures aiming at lending expansion, risk management and staff training.

Company Contact Information

Erdenedelger B., Director of Treasury and Investment Banking
erdenedelger.b@khanbank.com
+976 11 332 333
+976 70 117 023
www.khanbank.com
Khan Bank LLC Seoul Street-25, PO.BOX-192, Ulaanbaatar, Mongolia

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.