FIF - CA WIB Programme - Khan Bank IV

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior unsecured loan of up to USD 70m to Khan Bank JSC ("KB" or the "Company") under the Central Asia Women in Business Programme under the Financial Intermediary Framework ("FIF", OpId 47424) (the "WiB loan" or the "Project"). The WiB loan will be granted in two equal tranches, of which the second will be uncommitted.

Project ID 56004

Status Passed Final Review, Pending Approval

Location

Mongolia

Business Sector

Financial Institutions

Notice Type

Private

PSD translation (Mongolian) (PDF, 0.52MB)

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Bolortuya B., Director of International Banking Department
bolortuya.b@khanbank.com
+976 11 332 333
+976 70 117 023
www.khanbank.com
Khan Bank JSC Khan Bank Tower, Chinggis Avenue-6, Stadium Orgil-1, Khan-Uul District, Ulaanbaatar 17010 Mongolia

Project ID 56004

Status Passed Final Review, Pending Approval

Location

Mongolia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

09 Apr 2025

Disclosure date

05 Mar 2025

PSD translation (Mongolian) (PDF, 0.52MB)

Project Description

Project Objectives

The project will promote the competitiveness of the local economy and contribute to the financial inclusion of underserved female entrepreneurs.

Transition Impact

ETI score:70

project will contribute to the objectives of the CA WiB Programme, supporting its Inclusive and Competitive TI qualities, namely promotion of women-led businesses' access to finance and, more broadly, active participation of women in business, thus alleviating gender inclusion gaps in terms of "access to finance" and "employment and entrepreneurship".

Client Information

KHAN BANK JSC

KB is the largest commercial bank in Mongolia, providing services to more than 82 per cent of the population through its digital banking channels and a network of 545 branches across the country. As of 3Q2024, the bank reported total assets of US$ 5.9bn, loan portfolio of US$ 3.4bn, and equity of US$ 679m. KB is currently rated B2/stable by Moody's and B+/stable by Fitch, at par with the sovereign.

EBRD Finance Summary

USD 70,000,000.00

Total Project Cost

USD 70,000,000.00

Additionality

Financing structure - the EBRD offers a tenor which is longer than available to the client in the market on reasonable terms and conditions.

Knowledge, innovation, and capacity building - the EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realization of the project's objectives, including support to strengthen the capacity of the client.

Technical Cooperation and Grant Financing

The Project will be supported by the CA WiB TC Programme, which includes two linked TC components:

(i) tailored capacity-building for partner financial institutions ("PFIs"): a TC Programme of up to USD 5.75 million, established for PFIs capacity building and programme support. The TC programme will help PFIs, including KB, individually develop financial products and lending practices that meet the specific needs of women-led MSMEs and support implementation of the programme, including through training of PFI staff and marketing support, as well as a risk sharing mechanism to stimulate lending to this group on a sustainable basis by addressing identified market failures.

Funding source: Women Entrepreneurs Financing Initiative ("We-Fi")

Amount/currency: USD 5.75 million at the CA WiB Programme level

Funding status: Confirmed

Client contribution: In line with the EBRD Client Contribution Policy (BDS20-119/Rev 1) and guidelines, KB will be required to provide a parallel contribution to TC in the amount of up to USD 28,000. This parallel client contribution can be made in connection with seminars, events and marketing activities, and materials, which may be used for training and promotion of WiB-related products.

(ii) capacity-building for women-led MSMEs via the Advice for Small Businesses (ASB) team.

Funding source: We-Fi

Amount/currency: USD 4.5 million at the CA WiB Programme level

Funding status: Confirmed

A tailored-made TC to conduct a cybersecurity gap analysis of KB, with a specific focus on enhancing cybersecurity technologies and policies and mitigating risks arising from artificial intelligence (AI) systems. The consultant will also formulate an action plan for enhancing the bank's cybersecurity posture. KB will contribute 30% of the proposed TC cost in cash. Funding source: TBC. Funding status: confirmed for the proposed transaction. Amount/currency: EUR 60K (with 30% client contribution of EUR 18K and EBRD contribution of 70%, EUR 42K).

Company Contact Information

PSD Last Updated

05 Mar 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FIF - CA WIB Programme - Khan Bank IV

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

FIF - CA WIB Programme - Khan Bank IV

Overview

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Environmental and Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)