FIF - Ashid Capital (Simple) NBFI MSE Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior unsecured loan of up to EUR 2 million (in MNT equivalent) in favour of Ashid Capital NBFI LLC ("Simple" or the "Company"), a new client and one of the leading microfinance organisations in Mongolia. The loan will be granted under the FIF in two equal tranches, of which the second will be uncommitted.

Project ID 53905

Status In Exploratory, Pending Final Review

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

Anujin Ochirbat
anujin.o@simple.mn
+976-8008 9009
simple.mn
Central Tower, 5th floor, 2 Sukhbaatar Square, SBD-8, Ulaanbaatar 14200, Mongolia

Project ID 53905

Status In Exploratory, Pending Final Review

Location

Mongolia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

05 Aug 2025

Disclosure date

07 Aug 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

Aligned with the FIF objectives, the project will provide medium-term local-currency financing to Simple for on-lending to private Mongolian MSEs, thereby helping to address the acute gaps highlighted in the Financial Sector Strategy and the Country Strategy for Mongolia. The project is expected to increase financing to local MSEs, ensure prudent lending practices and adequate portfolio quality of Simple and further strengthen ties with MCS Group (the country's largest conglomerate and the Bank's existing client), the Company's parent.

Transition Impact

ETI score: 60

The proposed MSE loan will contribute to the objectives of the FIF, supporting its Competitive and Resilient transition qualities.

Client Information

ASHID CAPITAL NBFI LLC

Ashid Capital NBFI LLC, operating under the brand name "Simple", is a private micro-finance institution ("MFI"). Established in 2020, Simple emerged as the-third largest MFI in the country, capturing a 6% market share with portfolio of USD 88.1m, total assets of USD 100.6m and equity of USD 24.8m as of YE 2024. Headquartered in Ulaanbaatar, the Company has a network of 6 branches and 107 employees.

EBRD Finance Summary

EUR 2,000,000.00

Up to EUR 2,000,000.00 A senior unsecured loan of up to EUR 2 million (in MNT equivalent).

Total Project Cost

EUR 2,000,000.00

Additionality

Financing structure: EBRD provides medium-term local currency financing on terms, which are not readily available in the market.

Standard setting: Clearly defined eligibility criteria for sub-borrowers, adherence to EBRD environmental and social standards, covenants and reporting requirements, as well as higher inclusion standards far beyond current market standards - all contribute to strengthening the competitiveness and resilience of the local financial sector.

Gender Smart Initiatives: The Company is expected to improve its capacity to serve Women owned/managed SMEs by joining the We-Finance Code and participating in workshops. This initiative unites regulators and financial institutions to address the financing needs of women entrepreneurs in a coordinated manner.

Knowledge & Innovation: EBRD offers MSE lending expertise unavailable to commercial investors. Access to the Bank's Regional Small Business Programme (RSBP), an electronic knowledge sharing platform, will further enhance underwriting, risk management and staff skills of PFI. In addition, only EBRD offers access to RSBP, non-TC instruments, dedicated financing in local currency, a unique combination, which helps and incentivises PFIs, including the Company, to apply best practices.

Environmental and Social Summary

Categorised FI (ESP 2019). Ashid Capital is a micro-financial institution and a new client of the EBRD. Eligible sub-projects will support SME finance and are likely to present low to medium environmental and social (E&S) risks. The main E&S risks relate to the client's capacity to implement its Environmental and Social Management System (ESMS), as well as labour and occupational health and safety (OHS) issues, and potential environmental and social impacts. E&S due diligence was conducted through a review of the client's completed E&S questionnaire, follow-up communication, a virtual meeting, and supporting documentation. While Ashid Capital has a Human Resources policy and has partially developed OHS procedures, it does not currently have a fully developed ESMS.

The E&S due diligence identified gaps in compliance, particularly with Performance Requirement (PR) 9, and to a lesser extent with PRs 2 and 4. These gaps will be addressed through specific actions outlined in an Environmental and Social Management Plan (ESMP), which will be included in the financing agreement.

The client is expected to develop, as necessary, its ESMS to effectively assess, manage, and monitor E&S risks and impacts in line with the EBRD's PRs 2, 4, and 9 under ESP 2019. This includes applying the EBRD's E&S exclusion and referral lists and aligning with relevant EBRD guidance for financial institutions. Sub-borrowers financed by the client must comply with applicable national environmental, health, safety, and labour laws. Ashid Capital will need to submit annual E&S reports to the EBRD, detailing ESMS implementation, compliance with the EBRD requirements, sub-project screening results, and any material E&S incidents.

The project is determined aligned with the Paris Agreement based on the application of the EBRD's Paris alignment approach for indirectly financed investments. The alignment determination is based on the application of pillar 1 (counterparty commitment to the Paris Agreement) and pillar 2 (sub-transactions filter).

Technical Cooperation and Grant Financing

A. Technical Cooperation (TC): None.

B. Co-investment grants / Concessional Finance ("Non-TC") - A 12.5% First Loss Risk Cover under the SME LCY Programme in favour of the EBRD.

Company Contact Information

Anujin Ochirbat
anujin.o@simple.mn
+976-8008 9009
simple.mn
Central Tower, 5th floor, 2 Sukhbaatar Square, SBD-8, Ulaanbaatar 14200, Mongolia

PSD Last Updated

07 Aug 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 - Ashid Capital (Simple) NBFI MSE Loan

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

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)