19 October 2022, Ulaanbaatar
The European Bank for Reconstruction and Development (EBRD) is providing fresh funds and creating new growth opportunities for grassroots businesses in Mongolia by offering a financial package of US$ 70 million to the country’s largest commercial lender Khan Bank.
The package consists of a senior EBRD loan of up to US$ 45 million under the Bank’s Green Economy Financing Facility (GEFF), which will help increase access to green technologies for local households and small and medium-sized enterprises (SMEs) in the country. The loan is supported by concessional financing of US$ 15 million provided by the Green Climate Fund (GCF).
The GEFF loan will benefit from technical cooperation funds of up to €6 million provided by the GCF and Japan.
The remaining US$ 10 million of the package is provided under the EBRD’s Women in Business (WiB) programme for Mongolia. This component will help promote women’s entrepreneurship and business activity by assisting with access to finance, know-how, and technical advice.
The WiB loan will be supported by grant funding of up to US$ 8 million from the Women Entrepreneurs Finance Initiative (We-Fi).
GEFF Mongolia is part of the EBRD’s Green Economy Transition (GET) approach, through which the EBRD aims to become a majority green bank by 2025. The programme operates through a network of more than 170 local financial institutions across 28 countries, supported by more than €5.8 billion of EBRD financing for over 220,000 clients to date. These projects have led to annual CO2 emission reductions of more than 9 million tonnes so far.
As part of its Women in Business initiative, the Bank has supported more than 90,000 women across 24 economies with financing and business advisory projects, training, and mentoring.
To date, the EBRD has invested €2.28 billion million through 123 projects in Mongolia’s economy.
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