EBRD lends US$ 70 million to Mongolia’s Khan Bank

By Svitlana  Pyrkalo
@pyrkalo

Email: svitlana.pyrkalo@ebrd.com   EBRD lends US$ 70 million to Mongolia’s Khan Bank

EBRD financing will be aimed at SMEs and their value chains, sustainable energy and cross-border trade

The EBRD has extended a total of US$ 70 million in loans to Mongolia’s Khan Bank, aimed at small and medium-sized enterprises (SMEs).

The EBRD package will include financing for SMEs and their value chains, sustainable energy projects designed to improve energy efficiency, a risk-sharing facility that will help Khan Bank clients access longer-term financing, and an increase in the trade finance facility, which helps companies perform export and import operations.

The sustainable energy part of the financing package, which is US$ 10 million, is part of the special financing framework, Mongolian Sustainable Energy Financing Facility. The EBRD has such facilities in many countries of operations; they are part of the Bank’s drive for green economy transition. The EBRD is also providing technical cooperation as part of the sustainable energy financing portion, funded by the multi-donor EBRD Shareholder Special Fund.

Khan Bank, which has around 500 offices across Mongolia, is one of the largest commercial banks in the country. The loan agreements were signed by Khan Bank CEO Norihiko Kato and the head of the EBRD office in Mongolia, Matthieu Le Blan.

Supporting SMEs is one of the EBRD’s priorities in Mongolia. Alongside financing, the Bank offers expert advice and know-how through its Small Business Support programme.