KHAN BANK LLC
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Khan Bank LLC (Khan) is Mongolia’s largest commercial bank. Through its extensive network of 547 branches and digital channels nationwide, Khan provides banking services to an estimated 80% of Mongolian population. The bank provides comprehensive banking services and access to finance to individuals, small and medium sized enterprises and corporate customers in even the most remote areas of Mongolia. Khan is an existing FMO client since 2009 with good track record.
What is our funding objective?
The syndicated facility of USD 120 mln will be partially used to grow the MSME portfolio of the bank and to finance green activities of end clients. At the same time, the term facility will contribute to Khan’s funding stability.
Why do we fund this investment?
The funding supports Khan's ambition to remain the leading (M)SME and retail bank of the country reaching out to most Mongolians. Long term (USD) funding remains scarce. Inclusiveness and impact of the aforementioned facility are driven by the strong remote outreach of Khan in a large and thinly populated country like Mongolia as well as the significant SME portfolio and plans to further digitalize activities.
What is the Environmental and Social categorization rationale?
Khan Bank is categorized as an E&S FI-B risk. Khan has limited exposure to high risk sectors. The bank has a functioning E&S Management System in place developed in the past years with the support of international lenders.
More investments
| Date | Total FMO financing |
|---|---|
| 3/16/2023 | USD 35.00 MLN |
| 9/20/2021 | USD 30.50 MLN |
| 8/3/2023 | USD 42.00 MLN |
| 5/25/2021 | USD 10.00 MLN |
| 6/4/2020 | USD 20.00 MLN |
| 6/4/2020 | USD 5.00 MLN |
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 5/7/2021
- Effective date
- 9/20/2021
- Total FMO financing
- USD 30.85 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B