📋 Tender Overview
Loan ordinary capital resources usd 14.00 million approved
Adb will provide a senior unsecured loan of up to $15 million with a tenor of up to 3 years to bogd bank to fund subloans to msmes. the adb loan comprises two tranches: (a) tranche a of $14 million for multi-sector finance to msmes with a minimum of 50% to be disbursed to wmsmes; and (b) tranche b of $1 million for climate finance to msmes.
By improving access to finance, the project will support the expansion of msmes and diversification of the economy, which will contribute to employment and poverty reduction in mongolia. the project will also promote green lending activities to msmes.
The project aligns with the operational focus area of expanding financing to msmes and to women in the strategy 2030 finance sector directional guide. the project builds on previous adb support for msme financing in mongolia and reflects the lessons learned from earlier projects. while their performances were impacted by various economic crises (with msme loan portfolio growth targets being missed), all prior adb loans remained performing, highlighting the importance of selecting solid financial institution partners, performing thorough due diligence, and setting realistic development targets in project designs.
The project aligns with the operational focus area of expanding financing to msmes and to women in the strategy 2030 finance sector directional guide. the project builds on previous adb support for msme financing in mongolia and reflects the lessons learned from earlier projects. while their performances were impacted by various economic crises (with msme loan portfolio growth targets being missed), all prior adb loans remained performing, highlighting the importance of selecting solid financial institution partners, performing thorough due diligence, and setting realistic development targets in project designs.
Finance / small and medium enterprise finance and leasing
Concept Clearance: -
Credit Committee Meeting: -
Approval: 29 Feb 2024
Last PDS Update: 30 Jan 2024
