In September 2021, Khan Bank signed a 120 million USD long-term syndicated loan facility agreement arranged by the Dutch entrepreneurial development bank FMO. After the first tranche of 60 million USD was received in October 2021, we are pleased to announce the receival of the second tranche of 60 million USD on 28 October 2022.
Under the facility agreement, Khan Bank earmarked 80 million USD for expanding its small and medium-sized enterprise (SME) loan portfolio, 20 million USD for financing green loans and projects, and the remaining 20 million USD for general corporate purposes.
The Bank converted the first tranche into MNT through a long-term swap arrangement with the Bank of Mongolia and received 182.4 billion MNT, which has been fully utilized for supporting SME clients through working capital loans and long-term investment loans. The second tranche will also be used to finance SME loans and fund green projects and loans.
Further financing provided under the FMO syndicated loan facility, granted in cooperation with DEG-the German Development Finance Institution, Groupe Agence Française de Développement (Proparco), and Atlantic Forfaitierungs AG, demonstrates high investor confidence in Khan Bank, solidifies our long-term partnerships, and will positively impact the Bank’s customers and the Mongolian economy.
Commenting on the financing, Mrs. Erdenedelger Bavlai, Deputy CEO of Khan Bank, stated, “We are pleased to have successfully secured this funding at this critical period of economic situation amidst the macroeconomic challenges. We are grateful for the continued support from our international investors led by FMO. With this financing, we are increasing our support for green investments and projects while focusing on supporting our MSME clients with access to much-needed long-term financing to boost their business resilience and sustainable growth.”
“Khan Bank has been our longstanding client in Mongolia for over 10 years. We are verry happy that together with our partners we are able to contribute to Khan’s SMEs business growth and embark on a new journey together funding the green opportunities within the Bank’s portfolio”, said Marnix Monsfort, Director Financial Institutions Department at FMO.
Gonzague Monreal, Head of Financial Institutions at Proparco added: “With this 60 million USD disbursement, we are proud to support Khan Bank’s commitment to SMEs and to partner with other financial institutions, under the leadership of FMO. Khan Bank plays a central role in promoting financial inclusion in Mongolia. In addition, the growth of its green portfolio makes it a key partner for addressing the specific development challenges of the country.”
Alexander Schulze, Climate/ Green Expert for Financial Institutions at DEG said: “As a strategic financing partner, DEG is pleased about the successful implementation of the SME & Green transaction and its specific contribution to capacity building for green finance via a dedicated TA measure. We trust that our long-term partner Khan Bank will create a positive impact by promoting green finance in the Mongolian economy and supporting local SME’s.”
Atlantic Forfaitierungs AG: Being engaged in Mongolia in the field of trade and import finance for over 20 years, we are very pleased to continue to support our long-term partner Khan Bank in the transformation process towards a sustainable and green economy whilst reducing carbon footprint through the impact of this finance facility. We also greatly appreciate our successful partnership with FMO, thereby strengthening small and medium enterprises in Mongolia, as previously achieved in other regions of the world.
Khan Bank - Growing Together
In September 2021, Khan Bank signed a 120 million USD long-term syndicated loan facility agreement arranged by the Dutch entrepreneurial development bank FMO. After the first tranche of 60 million USD was received in October 2021, we are pleased to announce the receival of the second tranche of 60 million USD on 28 October 2022.
Under the facility agreement, Khan Bank earmarked 80 million USD for expanding its small and medium-sized enterprise (SME) loan portfolio, 20 million USD for financing green loans and projects, and the remaining 20 million USD for general corporate purposes.
The Bank converted the first tranche into MNT through a long-term swap arrangement with the Bank of Mongolia and received 182.4 billion MNT, which has been fully utilized for supporting SME clients through working capital loans and long-term investment loans. The second tranche will also be used to finance SME loans and fund green projects and loans.
Further financing provided under the FMO syndicated loan facility, granted in cooperation with DEG-the German Development Finance Institution, Groupe Agence Française de Développement (Proparco), and Atlantic Forfaitierungs AG, demonstrates high investor confidence in Khan Bank, solidifies our long-term partnerships, and will positively impact the Bank’s customers and the Mongolian economy.
Commenting on the financing, Mrs. Erdenedelger Bavlai, Deputy CEO of Khan Bank, stated, “We are pleased to have successfully secured this funding at this critical period of economic situation amidst the macroeconomic challenges. We are grateful for the continued support from our international investors led by FMO. With this financing, we are increasing our support for green investments and projects while focusing on supporting our MSME clients with access to much-needed long-term financing to boost their business resilience and sustainable growth.”
“Khan Bank has been our longstanding client in Mongolia for over 10 years. We are verry happy that together with our partners we are able to contribute to Khan’s SMEs business growth and embark on a new journey together funding the green opportunities within the Bank’s portfolio”, said Marnix Monsfort, Director Financial Institutions Department at FMO.
Gonzague Monreal, Head of Financial Institutions at Proparco added: “With this 60 million USD disbursement, we are proud to support Khan Bank’s commitment to SMEs and to partner with other financial institutions, under the leadership of FMO. Khan Bank plays a central role in promoting financial inclusion in Mongolia. In addition, the growth of its green portfolio makes it a key partner for addressing the specific development challenges of the country.”
Alexander Schulze, Climate/ Green Expert for Financial Institutions at DEG said: “As a strategic financing partner, DEG is pleased about the successful implementation of the SME & Green transaction and its specific contribution to capacity building for green finance via a dedicated TA measure. We trust that our long-term partner Khan Bank will create a positive impact by promoting green finance in the Mongolian economy and supporting local SME’s.”
Atlantic Forfaitierungs AG: Being engaged in Mongolia in the field of trade and import finance for over 20 years, we are very pleased to continue to support our long-term partner Khan Bank in the transformation process towards a sustainable and green economy whilst reducing carbon footprint through the impact of this finance facility. We also greatly appreciate our successful partnership with FMO, thereby strengthening small and medium enterprises in Mongolia, as previously achieved in other regions of the world.
Khan Bank - Growing Together