- The EBRD and the GCF extend a US$ 25 million loan to XacBank of Mongolia
- Funds will promote the greater use of green technologies
- Project is the latest under the GEFF Mongolia
Companies and households across Mongolia will be able to modernise production, increase their energy efficiency and improve their climate resilience thanks to a new financing package organised by the European Bank for Reconstruction and Development (EBRD) for the country’s most active green lender, XacBank.
The package of up to US$25 million, arranged under the EBRD’s Green Economy Financing Facility, consists of an EBRD loan of up to US$ 18.75 million and financing of up to US$ 6.25 million provided by the Green Climate Fund (GCF).The funds will be on-lent to borrowers to reduce energy consumption, promote the use of renewable energy sources and support local businesses in adopting environmentally friendly practices.
XacBank, one of the largest banks in Mongolia, was the first local financial institution to join the EBRD’s GEFF. It supports green lending to micro, small and medium-sized enterprises through 72 branches across the country. Through the GEFF Mongolia, XacBank offers equal opportunities for men and women keen to access finance for green technologies.
The GCF and the Government of Japan are supporting the project with technical assistance under the GEFF Mongolia.
To date, the EBRD has invested almost US$ 2.16 billion in Mongolia’s economy through 132 projects.