📋 Tender Overview
Location:
Mongolia
Project number:
56004
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
09 Apr 2025
Status:
Exploratory
English-language PSD published:
05 Mar 2025
Project Description
The provision of a senior unsecured loan of up to USD 70m to Khan Bank JSC ("KB" or the "Company") under the Central Asia Women in Business Programme under the Financial Intermediary Framework ("FIF", OpId 47424) (the "WiB loan" or the "Project"). The WiB loan will be granted in two equal tranches, of which the second will be uncommitted.
Project Objectives
The project will promote the competitiveness of the local economy and contribute to the financial inclusion of underserved female entrepreneurs.
Transition Impact
ETI score: 70
The project will contribute to the objectives of the CA WiB Programme, supporting its Inclusive and Competitive TI qualities, namely promotion of women-led businesses' access to finance and, more broadly, active participation of women in business, thus alleviating gender inclusion gaps in terms of "access to finance" and "employment and entrepreneurship".
Client Information
KHAN BANK JSC
KB is the largest commercial bank in Mongolia, providing services to more than 82 per cent of the population through its digital banking channels and a network of 545 branches across the country. As of 3Q2024, the bank reported total assets of US$ 5.9bn, loan portfolio of US$ 3.4bn, and equity of US$ 679m. KB is currently rated B2/stable by Moody's and B+/stable by Fitch, at par with the sovereign.
EBRD Finance Summary
USD 70,000,000.00
Total Project Cost
USD 70,000,000.00
Additionality
Financing structure - the EBRD offers a tenor which is longer than available to the client in the market on reasonable terms and conditions.
Knowledge, innovation, and capacity building - the EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realization of the project's objectives, including support to strengthen the capacity of the client.
Environmental and Social Summary
Categorised FI (ESP 2019). KB, an existing client, has demonstrated satisfactory environmental and social ("E&S") performance under its current exposure. The loan will be provided under the FIF CA WiB Programme for on-lending to eligible women-led MSMEs, which are considered low to medium risk from an E&S perspective.
KB's E&S management system is aligned with EBRD's and applied to KB's whole lending portfolio. Since 2010, KB has implemented its Sustainable Development Policy, which includes climate change, human rights, children's rights, quality, and biodiversity, and integrated into KB's day-to-day operations. KB regularly evaluates the performance of its suppliers based on sustainability and social responsibility criteria. Additionally, KB publishes its annual Sustainable Development and ESG report on its website. KB has been a
