Canadian bilateral development finance arm FinDev Canada has entered Mongolia for the first time, announcing the signing of a $50 million loan to Khan Bank, the largest Mongolian commercial bank.
The lending is arranged through a broader $250 million syndicated lending facility led by Dutch entrepreneurial development bank, FMO.
The financing will support Khan Bank's capability with populations vulnerable to economic or climate shocks. By breakdown, the partners say 40 percent of the lending will be devoted to micro, small and medium-sized enterprises (MSMEs) and another 30 percent specifically to women-owned or led MSMEs (WMSMEs).
The remainder will be directed to the bank's climate mitigation and adaptation financing, a primary focus of the Central Asian country's 2030 strategic commitments.
“We are proud to make our first investment in Mongolia by partnering with Khan Bank, alongside FMO. By working together, we can advance climate action, improve financial inclusion, promote gender equality, and support women owned or led businesses. This partnership reflects our shared commitment to maximizing development impact, and supporting Mongolia’s long-term vision for sustainable economic growth,” said Lori Kerr, CEO, FinDev Canada.
“Working closely with our partners to scale and mobilize finance for sustainable development impact is at the core of FMO’s 2030 strategy. We are proud to have fostered this new partnership between our longstanding partner Khan Bank and our trusted ally FinDev Canada through this syndicated facility and are thankful for their great collaboration and shared commitment to financial inclusion and climate action,” said Annemieke Mokveld, Head of Syndications, FMO.
