GCF GFS Regional - Mongolia - Khan Bank

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior unsecured loan of up to US$ 80 million to Khan Bank JSC ("KB" or the "Company") under the Green Climate Fund Greening Financial Systems Framework ("GCF GFS loan"). Out of this amount up to US$ 72 million in US dollars or MNT equivalent will be provided by the EBRD and up to US$ 8 million in US dollars will be provided by the Green Climate Fund ("GCF"). The GCF GFS loan will be granted in two equal tranches, of which the second one will be uncommitted.

Project ID 57140

Status Exploratory

Location

Mongolia

Industry 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

Ariunjargal Chuluunbaatar, Head of International Banking Department
investmentbank@khanbank.com
+976 99070819
www.khanbank.com
Khan Bank JSC Khan Bank Tower, Chinggis Avenue-6, Stadium Orgil-1, Khan-Uul District, Ulaanbaatar 17010 Mongolia

Project ID 57140

Status Exploratory

Location

Mongolia

Industry Sector

Financial Institutions

Notice Type

Private

Approval Date

14 May 2026

Disclosure date

08 Apr 2026

Project Description

Project Objectives

The GCF GFS loan will enable Khan Bank to diversify its funding base and provide medium-term financing to private clients in Mongolia for investments in climate change mitigation and adaptation technologies and services, in a gender-responsive way, thereby contributing to the Green Economy Transition ("GET").

Transition Impact

ETI score: 75

The project contributes to the objectives of the GCF GFS Regional Framework, supporting its Green TI quality, with 100 per cent of the proceeds allocated to GET activities in line with the GCF GFS Mongolia Policy Statement.

Client Information

KHAN BANK JSC

KB is the largest commercial bank in Mongolia, with total assets of USD 6.7 billion (28 per cent of the sector's assets), loan portfolio of USD 3.8 billion (33 per cent), and equity of US$ 793 million (33 per cent) as of year-end 2025. The bank serves more than 84 per cent of the population through its digital banking channels and a network of 529 branches across the country. The bank is currently rated "B1/stable" by Moody's and "B+/stable" by Fitch, at par with the sovereign rating.

EBRD Finance Summary

USD 72,000,000.00

A senior loan of up to US$ 72 million in US dollars or MNT equivalent.

Total Project Cost

USD 80,000,000.00

US$ 80 million out of which up to US$ 72 million in US dollars or MNT equivalent will be provided by the EBRD and up to US$ 8 million in US dollars will be provided by the GCF.

Additionality

Combination of medium-term investments with technical assistance, including innovative financing structure and instruments, as well as standards setting by helping the client achieve higher standards to support transition to a low-carbon and climate-resilient economy.

Gender additionality will be achieved by reflecting gender considerations in the transactions through enhancing KB's standards of business conduct, awareness campaigns targeting both female and male sub-borrowers for green financing and financial literacy trainings (with a focus on green finance) for women sub-borrowers.

Green assessments

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).

100 per cent of the EBRD financing is classified as green finance, as it supports activities to achieve climate mitigation and climate adaptation objectives. The attribution is made in line with the methodology to determine the green finance attribution of the EBRD investments.

Technical Cooperation and Grant Financing

A. Technical cooperation ("TC").

The GCF GFS loan will be supported by a TC package at the country's framework level, partially sourced from the EBRD Shareholders Special Fund ("SSF"), with the remainder sourced at a later stage.

The objective of the TC is to assist KB with capacity building, implementation, and monitoring of the GCF GFS loan in a gender-responsive way. The consultant will transfer know-how and raise awareness about climate change mitigation and adaptation technologies in commercial operations; provide project appraisal support and guide sub-borrowers to most optimal technology choices. A gender expert will support the integration of gender-related activities (e.g. product development, marketing, outreach activities) across all aspects of the TC delivery.

Client contribution: KB will make a parallel contribution towards marketing and training costs connected with the implementation of the project.

TC to MSMEs will be delivered through targeted non-financial services to help KB's potential sub-borrowers adopt green practices and technologies, including renewable energy generation, and resource efficiency measures and green sustainable agriculture practices while also strengthening their ability to absorb green finance. Funding is confirmed from the European Union, Building Crisis-Resilient SMEs in Mongolia post COVID-19 (ACA/2021/420-670).

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

The GCF GFS loan will be supported by non-TC grant funding from the GCF and financial incentive grants in form of Result-Based Compensation ("RBC") of up to 3%. The RBC is expected to incentivise KB to develop and implement a climate transition plan and related transition strategies, and ultimately publicly disclose core elements of its climate transition plan.

Company Contact Information

Implementation Summary

PSD Last Updated

08 Apr 2026

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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GCF GFS Regional - Mongolia - Khan Bank

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

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)

GCF GFS Regional - Mongolia - Khan Bank

Overview

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Environmental and Social Summary

Green assessments

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)