Translated version of this PSD: Mongolian
The EBRD is considering a Sustainable Energy loan in the amount of up to US$ 10 million equivalent in MNT under the Mongolian Sustainable Energy Financing Facility (MonSEFF). The funds will be on-lent to private enterprises in Mongolia for financing sustainable energy projects in the country. The project is expected to contribute to building capacity of XacBank in sustainable energy lending and to provide much needed medium-term local currency funding to Mongolian companies.
This will be the first sub-project under the pilot MonSEFF facility, and it will generate transition impact by demonstrating the benefits of energy conservation and promoting the early adoption of sustainable energy financing. As part of MonSEFF, this project will demonstrate the effects of rational energy utilisation for improving industrial competitiveness in light of rising energy costs in Mongolia.
The project is also expected to build expertise related to sustainable energy investments among XacBank and its sub-borrowers. The bank will build expertise in assessing the risk and creditworthiness of clients for sustainable energy investments and enhance their capability in identifying clients with sustainable energy savings potential. Sub-borrowers, supported by technical cooperation (TC) are expected to learn the technical and financial benefits of Sustainable Energy Investments to improve their operations.
XacBank is the fourth largest bank in Mongolia. It is a leading micro and small business lender in Mongolia with 92 branches and service outlets across the country.
Senior loan in the amount of US$ 10 million equivalent in MNT.
US$ 10 million equivalent in MNT.
Categorised FI. XacBank is an existing client of the Bank and has adopted an Environmental Policy and Environmental and Social Procedures, which satisfy the EBRD’s performance requirements 2 and 9.
In 2011-2012, XacBank benefited from technical assistance to support the bank’s plans to expand its outreach to SME and corporate clients. The funding was provided by the government of the Republic of Korea.
Previously, between 2008 and 2010, TC was provided to the bank to support its MSME lending activities. The funding was provided by the EBRD Early Transition Country Fund and the EBRD Shareholder Special Fund.
The TC under the current project is envisaged to support the identification of sustainable energy projects (e.g. via energy audits, training to loan officers, marketing support, etc.) and to build capacity in sustainable energy lending at XacBank. The funding for this TC is yet to be secured.
XacBank HQ Bldg
Post Branch 20A
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