FIF-CA WiB Programme - Transcapital

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior loan of up to US$ 1,750,000 (in MNT equivalent) under the EBRD's Local Currency Programme. The loan will be provided in two tranches to Transcapital NBFI LLC Mongolia within the Central Asian Women in Business Programme (CA WiB) for on-lending to women-led micro, small and medium-sized enterprises.

Project ID 52678

Status Complete

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

Ms Oyun-Erdene B
oyunerdene@transcapital.mn
www.transcapital.mn
Transcapital Building, Partisan's Street, Sukhbaatar District, 4th khoroo, Ulaanbaatar 14250, Mongolia

Project ID 52678

Status Complete

Location

Mongolia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

09 Nov 2021

Disclosure date

12 Nov 2021

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."

FIF-CA WiB Programme - Transcapital (Mongolian) (PDF, 0.65MB)

Project description

Project objectives

The project objective is to promote and support women entrepreneurship in Mongolia and, more broadly, women's participation in business by assisting women-led micro, small and medium-sized enterprises (MSMEs) to access finance, know-how and advice, including in the country's regions. The financing gap is a major obstacle in enabling the transition of women-led MSMEs.

Transition impact

ETI Score:70

ject contributes to the objectives of the Women in Business programme in Central Asia which is expected to generate transition impact under the Inclusive and Competitive qualities. The loan will promote female entrepreneurship and, more broadly, women's active participation in business, alleviating gender inclusion gaps in terms of "access to finance" and "employment and business". The project represents one of the first two sub-operations of the Women in Business Programme in Mongolia.

Client information

TRANSCAPITAL NBFI LLC

Established in 2001, TCMN is the 3rd largest non-bank financial institution (FI) in the country and has the highest MSE lending share among its peers in a fragmented market, where non-bank FIs account for a market share of around 5 per cent. The company provides loans to MSMEs, households and individuals in the Ulaanbaatar area (19 branches) and 15 rural provinces of the country (16 branches). TCMN has been the Bank's since 2013.

EBRD Finance Summary

USD 1,750,000.00

EBRD-Finance €-equivalent: 1.5 mln

Total project cost

USD 1,750,000.00

EBRD-Finance €-equivalent: 1.5 mln

Additionality

Financing structure: the EBRD provides local currency financing on terms not readily available in the market.

Knowledge, innovation, and capacity building: the EBRD provides technical assistance that is necessary to strengthen the capacity of the client and key to the timely fulfillment of the project's objectives.

Environmental & Social Summary

Category FI (2019 ESP). TCMN is an existing client and performing well under the existing projects. The client was visited by ESD in 2018 to review the project appraisal processes, typical features of the lending portfolio and the monitoring methods applied by the client. They have EHSS risk management practices in line with PR9 and apply labour and OHS practices to their own staff in line with PR2 and 4. This application will remain for the proposed Loan, and the client will continue to utilise the Bank's EHSS Procedures for Corporate, SME and Microloans.

Technical Cooperation and Grant Financing

A. Technical Cooperation (TC)

The Central Asian WiB TC Programme includes two linked TC components:

(i) tailored capacity-building for partner banks.

Funding source: We-Fi

Amount/currency: US$ 5.0m at the CA WiB Programme level

Funding status: Confirmed

(ii) capacity-building for women-led MSMEs via the Advice for Small Businesses (ASB) team.

Funding source: We-Fi

Amount/currency: US$ 4.5m at the CA WiB Programme level

Funding status: Confirmed

B. Co-investment grants / Concessional Finance (Non-TC)

The project involves a First Loss Risk Cover mechanism of up to 10 per cent of a WiB loan (limited to 70 per cent per a single sub-loan) which translates into up to US$ 0.175 mln for the project; the first loss risk cover will compensate for credit losses of TCMN as a result of its participation in the Programme.

Funding source: We-Fi

Amount/currency: US$ 0.175m

Funding status: Confirmed

Non-TC: A first-loss guarantee is provided by the SME Local Currency Special Fund to fund a first loss for the benefit of the EBRD.

Company Contact Information

Ms Oyun-Erdene B
oyunerdene@transcapital.mn
www.transcapital.mn
Transcapital Building, Partisan's Street, Sukhbaatar District, 4th khoroo, Ulaanbaatar 14250, Mongolia

Implementation summary

PSD last updated

12 Nov 2021

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-CA WiB Programme - Transcapital

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

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)