MonSEFF:Khan Bank Sustainable Energy Loan

Country:

Mongolia

Project number:

48857

Business sector:

Financial institutions

Notice type:

Private

Target board date:

18 Jul 2017

Status:

Exploratory

PSD disclosed:

13 Jun 2017

Translated version of this PSD: Mongolian

Project Description

A sustainable energy ("SE") loan of up to USD 5 million under the Mongolian Sustainable Energy Financing Facility ("MonSEFF") to Khan Bank for financing sustainable energy projects in Mongolia.

Project Objectives

The Project will promote SE financing, technologies and renewable energy investments in the industrial sector of Mongolia through one of leading local banks, demonstrate innovative products and processes to the market and contribute to the transfer of skills via dedicated technical cooperation (TC).

Transition Impact

The Project facilitates financing of SE investments for industrial clients, thus contributing to green economy transition through climate change mitigation, climate change adaptation, and wider environmental areas.

Through dedicated TC and advisory support, the Project intends to develop and strengthen Khan Bank's skills in assessment of SE-related investments with a view to support Khan bank in developing a sustainable product and demonstrating the new financing method to the market.

The Project also raises awareness to businesses, households, and ecosystem (suppliers etc.) on the benefits of energy and resource efficiency, among other areas.

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 5,000,000.00

Total Project Cost

USD 5,000,000.00

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; in addition, the subborrowers financed through the SE loan will need to comply with the eligibility criteria for MonSEFF projects. 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

The SE Loan will benefit from EUR 1.4 m TC available under the MonSEFF and funded by the EBRD Special Shareholder's Fund.

The TC package will support the identification and assessment of eligible sustainable energy projects, capacity building to Khan Bank in sustainable energy lending and marketing support.

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.

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Email: procurement@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm.

Project Complaint Mechanism

Any complaint under the PCM must be filed in accordance with the timeframes prescribed in the PCM Rules of Procedure. You may contact the PCM Officer (at pcm@ebrd.com) for assistance if you are uncertain as to the eligibility of your complaint.