FIF - Agri Finance Loan - Khan Bank

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior unsecured loan of up to US$ 20m (€ 16.8 m) to Khan Bank under the Financial Intermediaries Framework (FIF). The loan proceeds will be on-lent exclusively to support the local agricultural sector, including investments in environmentally sustainable (i.e. Green Economy Transition (GET) eligible) agriculture sector.

Project ID 56745

Status Approved

Location

Mongolia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Bolortuya B., Director of International Banking Department
bolortuya.b@khanbank.com
+976 11 332 333
+976 70 117 023
www.khanbank.com
Khan Bank JSC Khan Bank Tower, Chinggis Avenue-6, Stadium Orgil-1, Khan-Uul District, Ulaanbaatar 17010 Mongolia

Project ID 56745

Status Approved

Location

Mongolia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

21 Oct 2025

Disclosure date

22 Oct 2025

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Project Objectives

The loan will enable Khan Bank to diversify its funding base and provide long term financing to support the agricultural sector exclusively, including supporting environmentally sustainable (i.e. GET eligible) agriculture sector investments.

Transition Impact

ETI score: 60

The Project contributes to the objectives of the FIF, supporting the Competitive and Green transition qualities.

Client Information

KHAN BANK JSC

Khan Bank JSC (KB) is the largest commercial bank in Mongolia, providing services to more than 82 per cent of the population through its digital banking channels and a network of 538 branches across the country.

As of 1H2025, the bank's total assets reached US$ 6.0bn (29 per cent of the sector's assets), with loan portfolio of US$ 3.6bn (32 per cent), and equity of US$ 680.8m (34 per cent). KB is currently rated "B2/stable" by Moody's and "B+/stable" by Fitch, at par with the sovereign.

EBRD Finance Summary

USD 20,000,000.00

The loan will be granted in two equal tranches, of which the second will be uncommitted. It is proposed to delegate the authority to approve availability of the second tranche to Management. Each tranche will have a tenor of up to 3 years, including a grace period of up to 1 year.

Total Project Cost

USD 20,000,000.00

Additionality

Financing structure: the EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.

Knowledge, innovation and capacity building: the EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of Khan Bank.

Standard-setting - helping projects and clients achieve higher standards: Khan Bank will benefit from the EBRD expertise in improving their climate risk management framework related to agriculture sector.

Environmental and Social Summary

Categorised FI (ESP 2024). KB is an existing client of EBRD and currently complies with Environmental and Social Requirements (ESRs) 2, 4, and 9 under its existing exposures. The loan will finance investments in micro, small, and medium enterprises in the agriculture sector, assessed as having low to medium environmental and social ("E&S") risk. The main E&S risks relate to potential impacts from financed sub-loans, particularly those associated with agricultural activities such as land use, water consumption, chemical inputs, waste management, and labor practices.

E&S due diligence was undertaken through a review of the most recent annual E&S report. KB has an Environmental and Social Management System ("ESMS") that is considered commensurate with the risk profile of the eligible sub-projects, with caps on the size of individual and aggregate sub-loans providing an additional risk mitigant. KB is expected to maintain its ESMS to effectively assess, manage, and monitor E&S risks and impacts, and to uphold a human resources policy, internal grievance mechanism, and occupational health & safety procedures, in line with the EBRD's ESRs 2, 4, and 9 under ESP 2024. This includes compliance with the EBRD's E&S exclusion list and alignment with relevant EBRD guidance for financial institutions. Sub-borrowers financed by the client must comply with applicable national environmental, social, health, safety, and labor laws. KB will submit annual E&S reports to EBRD, detailing ESMS implementation, compliance with EBRD requirements, sub-project screening results, and any material E&S incidents. KB is required to publicly disclose information on its ESMS in line with ESP 2024.

If the EBRD's financing is allocated to renewable energy sub-projects, these must meet the EBRD's E&S eligibility criteria for renewables, as well as any other requirements set out in the Policy Statement.

Technical Cooperation and Grant Financing

KB will benefit from direct TC support for lending into climate mitigation and adaptation sub-projects, including eligibility assessment, reporting, risk management, and non-financial services for agri- MSMEs. The TC is funded by SSF and the EU, with parallel in-kind contributions from the client. The project also features results-based compensation for achieving climate risk management milestones in agri lending, funded by SSF.

Company Contact Information

Implementation Summary

PSD Last Updated

22 Oct 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FIF - Agri Finance Loan - Khan Bank

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

Implementation Summary

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)