In December 2021, OeEB signed a bilateral credit line of USD 20 million with Khan Bank in Mongolia. In 2018, OeEB already contributed USD 15 million to a long-term loan to 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 2018 in the financing. In December 2024, OeEB provided another long-term investment of USD 20 million.
| 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 40 million |
| International climate finance according to UNFCCC | No |
| Additionality | Financial Additionality |
| Project partner(s) |
Khan Bank LCC |
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.
Furthermore, standardised and comparable measurement and reporting on the impact of investments is essential in order to assess progress in achieving goals, such as climate targets, to evaluate the effectiveness of investments and to promote impactful measures. These prerequisites are currently not in place for financial institutions in emerging markets and should be enabled through modeling via the Joint Impact Model (JIM). OeEB aims to support its portfolio client, Khan Bank, through the TA Facility of the JIM Foundation. The funds will be specifically allocated for the introduction to JIM and PCAF, the identification and validation of carbon-intensive segments, greenhouse gas accounting with more detailed inputs, the organization of on-site workshops, and the dissemination of lessons learned from different regions to a broader audience.