FIF - CA WiB Programme - Vision Fund NBFI

Location:

Mongolia

Project number:

52677

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

23 Nov 2021

Status:

Disbursing

PSD disclosed:

23 Nov 2021

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

The provision of a senior loan of up to US4 460,000 in MNT equivalent to Vision Fund NBFI LLC Mongolia (VFMN) under the EBRD's Local Currency Programme. The loan will be provided in two tranches within the Central Asian Women in Business Programme (CA WiB) for on-lending to women-led micro, small and medium-sized enterprises (MSMEs).

Project Objectives

The project objective is to promote and support women entrepreneurship in Mongolia and, more broadly, women's participation in business by assisting women-led MSMEs to access finance, know-how and advice, including in the country's regions. The financing gap is a major obstacle in enabling the transition of women-led MSMEs.

Transition Impact

ETI score: 75

The project contributes to the objectives of the Women in Business programme in Central Asia which is expected to generate transition impact under the Inclusive and Competitive qualities. The loan will promote female entrepreneurship and, more broadly, women's active participation in business, alleviating gender inclusion gaps in terms of "access to finance" and "employment and business". The project represents one of the first two sub-operations of the Women in Business Programme in Mongolia.

Client Information

VISION FUND NBFI LLC

Vision Fund Mongolia (VFMN) was established in 2004 as Zun San Mongolia NBFI, which implemented World Vision International Mongolia (WVMN"'s programme. It was renamed in 2007 to become a regulated NBFI with a mission to create income and jobs for families, targeting entrepreneurs living below the poverty line. Backed by its owner Vision Fund International, VFMN is one of the top 10 MFIs in Mongolia, which operatesa network of 9 branches and 3 representative offices across the country.

EBRD Finance Summary

USD 460,000.00

€400,000 equivalent

Total Project Cost

USD 460,000.00

€400,000 equivalent

Additionality

Financing structure: the EBRD is providing local currency financing on terms not readily available in the market.

Knowledge, innovation, and capacity building: the EBRD is providing technical assistance that is necessary to strengthen the capacity of the client and key to the timely fulfillment of the project's objectives.

Environmental and Social Summary

Category FI (2019 ESP). The client provided details on their EHSS capabilities and procedures for previous transactions. ESD staff have also previously visited the client in Ulaanbaatar to meet with key staff and discuss their approach. The procedures and their application have been shown to be appropriate for the risks posed by the lending profile of this client.  The proposed transaction will be governed by the 2019 policy and not the 2014 version as per the previous transaction.  The client will be required to maintain compliance with PR2 and 4 for their internal procedures and apply PR9 and the appropriate the EBRD EHSS Procedures to the lending activities associated with the proposed transaction.

Technical Cooperation and Grant Financing

A. Technical Cooperation (TC)

The Central Asian WiB TC Programme includes two linked TC components:

(i) tailored capacity-building for partner banks.

Funding source: We-Fi

Amount/currency: US$ 5 million at the CA WiB Programme level

Funding status: Confirmed

(ii) capacity-building for women-led MSMEs via the Advice for Small Businesses (ASB) team.

Funding source: We-Fi

Amount/currency: US$ 4.5 million at the CA WiB Programme level

Funding status: Confirmed

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

The project involves a First Loss Risk Cover mechanism of up to 10 per cent of a WiB loan (limited to 70 per cent per a single sub-loan), which translates into up to US$ 46,000 for the project; the first loss risk cover will compensate for credit losses of TCMN, if any, as a result of its participation in the Programme.

Funding source: We-Fi

Amount/currency: US$ 46,000

Funding status: Confirmed

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

CEO Ms Nurhayrah Sadava
Arah_sadava@wvi.org
+97670129772
www.visionfundmongolia.org
403, Somang Plaza, 13th Khoroolol, 15th Khoroo, Bayanzurkh District, Ulaanbaatar, Mongolia

PSD last updated

23 Nov 2021

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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