In September 2018, OeEB contributed USD 15 million to a long-term loan to Mongolian Khan Bank, arranged by Dutch Development Finance Institution FMO. The funds are dedicated to financing local micro, small and medium-sized businesses. Besides OeEB and FMO, the German and Belgian Development Finance Institutions DEG and BIO as well as the International Investment Bank participated in the financing.
| Project name |
Khan Bank LLC |
| Region |
Southern and Eastern Asia |
| Sector |
Financial sector / Microfinance / SME |
| Service |
Investment Finance |
| Project country | Mongolia |
| OeEB project volume |
USD 15 million |
|
Total investment volume |
USD 120 million |
| Projekt partner(s) |
FMO, DEG, BIO, IIB |
Khan Bank was founded in 1991 and is one of the leading financial institutions in Mongolia. With the country’s largest branch network it reaches customers in urban as well as in rural areas.
The credit line co-financed by OeEB enables Khan Bank to expand its MSME business. MSMEs make up the majority of Mongolia’s private sector and therefore play a crucial role in the country’s further economic development. However, restricted access to finance often limits their ability to invest and grow. By improving MSMEs' access to finance, an important contribution is made to strengthening the private sector as well as to securing and creating jobs.