RF - Transcapital Mongolia NBFI



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

13 Oct 2020



PSD disclosed:

14 Oct 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of a short-term senior loan of up to MNT 10 billion (€ 3.15 mln) to Transcapital Mongolia Non-bank Financial Institution ("TCMN") in two equal tranches. 

This project was approved in the context of the Bank's response to the Covid-19 pandemic.  To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information.  Details of the Bank's response to CovidD-19, and this deviation, can be found on our website.

Project Objectives

The loan will support TCMN's capital adequacy and will help Transcapital Mongolia continue commercial lending.  


Transition Impact

ETI score: 80

The project will contribute to the Resilient quality by reinforcing TCMN's lending capacity, and by helping it to maintain a sound funding profile that might have otherwise come under pressure in the current situation. 

The project will support the Competitive quality by helping TCMN sustain portfolio growth at least in line with the market. The proposed project will channel much-needed liquidity support to micro and small enterprises at a time when other lenders are paralyzed by a lack of liquidity and/ or a thin capitalization.

Client Information


TCMN is the largest non-bank FI lender to micro and small enterprises in Mongolia, with a market share of approx. 6.6 per cent in a highly fragmented market. It has 34 branches, of which 16 are in the regions outside of the capital. The loan portfolio of these rural branches accounts for 35 per cent of TCMN's total loan book.

EBRD Finance Summary

MNT 10,000,000,000.00

EBRD-Finance EUR-equivalent: 3.15 mln

Total Project Cost

MNT 10,000,000,000.00

EBRD-Finance EUR-equivalent: 3.15 mln


Additionality sources: COVID-19 crisis response: the EBRD financing effectively supports liquidity in adverse market conditions because of the COVID-19 crisis.

Additionality Description: the EBRD funding will contribute to unlock additional funding from other IFIs and impact investors which look at the IFIs for guidance, in particular at the EBRD given its long history of successful cooperation with TCMN. 

Environmental and Social Summary

Category FI (2019 ESP).  TCMN is an existing client and has been visited by ESD in 2018 to review their project appraisal processes, typical features of their lending portfolio, and their monitoring methods.  They have EHSS risk management practices in line with PR9, and also apply labour and OHS practices to their own staff in line with PR2 and PR4.  They will apply those PRs to the proposed credit line, along with the Bank's EHSS Procedures for Corporate, SME and Microloans.

Technical Cooperation and Grant Financing

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

Mr Batsuren Bat-Otgon
(976) 11332255
Transcapital Building, Partisan's Street, Sukhbaatar District, 4th khoroo, Ulaanbaatar 14250, Mongolia

Implementation summary

The Project was the first loan to a Mongolian Financial Institution under the EBRD's Resilience Framework in the context of the Bank's response to the Global Pandemic. Irrespective of severe restrictions on in-person meetings, let alone business trips, the loan was prepared and eventually signed in 2Q2021, despite a very difficult first winter with Covid and extensive lockdowns, from which Mongolia was only re-emerging at that time. The second tranche of the loan, uncommitted at signing, was already committed in 3Q2021 and subsequently disbursed. While already the EBRD funding itself contributed to fuelling Mongolian MSMEs' recovery from the fallout of the Global Pandemic, it contributed to this goal well beyond the EBRD loan amount as it helped catalyse loans from other lenders. The Project also ensured adherence to strict environmental and social standards. As a part of Transition Impact, the Project has contributed to the Resilient quality by reinforcing TCMN's lending capacity, and by helping it to maintain a sound funding profile that might have otherwise come under pressure in the current situation. Moreover, the Project has supported the Competitive quality by helping TCMN sustain portfolio growth at least in line with the market. The project has channelled much-needed liquidity support to micro and small enterprises at a time when other lenders were paralyzed by a lack of liquidity and/ or a thin capitalization.

PSD last updated

24 Nov 2022

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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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