Translated version of this PSD: Mongolian
The EBRD is considering providing an A/B loan of up to USD 200 million for the project which brings together two existing clients of the Bank in Mongolia: Leighton LLC in Mongolia as Lessee; and commercial bank Khan Bank as Lessor. The purpose of the proposed transaction is to boost support to the Mongolian mining sector at this stage of the commodities price cycle, and introduce the lease of specialized mining equipment (‘Yellow Goods’) to mining companies in Mongolia. This will be the first major Yellow Goods lease provided in the country.
The key sources of transition impact for the Project derive from demonstration effect of a new form of financing, setting standards, and market expansion. The Facility will introduce a new form of financing – this will be the first major Yellow Goods lease financing in Mongolia. The financing is especially timely at this stage of the commodities price cycle, to demonstrate continued support to investors in the local mining sectors. Finally the project will contribute to the transfer of knowledge and skills to the local leasing company.
Khan Bank group, the largest commercial banking group in Mongolia, and Leighton LLC, a wholly owned subsidiary of Leighton Holdings Limited, the world’s largest contract miner.
A/B loan of USD 200 million.
Approximately USD 200 million.
Category B. The environmental and social risks associated with mine equipment leasing are site specific and can be readily mitigated via the implementation of an Action Plan which, if required, will be agreed between the client and the Bank on completion of due diligence. This due diligence is focussing on the EHSS capabilities, and proposed policies and practices of the new Leasing Co and the operations of the lessee, Leighton LLC in Mongolia. Both Khan Bank and Leighton are known to the Bank from existing transactions and both have robust and effective EHSS risk management structures in place at the corporate level. Leighton has completed questionnaires on environmental, social and health & safety issues; and provided information on the labour policies that shall be adopted. The information provided is comprehensive and ESD is currently following-up on a small number of issues which require further clarification to enable the completion of due diligence to be completed. Due diligence is also seeking confirmation from Khan Bank that their corporate EHSS risk management policies and practices will apply to the operations of the Leasing Co.
TC for capacity building is under consideration.
Khan Bank LLC
Seoul Street – 25, PO Box – 192
Ulaanbaatar – 44, Mongolia
Phone: + 976 11 332333 3044
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Public Information Policy (PIP)
The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.