Khan Bank LLC
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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 is a FMO client since 2009. It is Mongolia's largest commercial bank, representing one third of the country’s banking sector. Via its extensive physical presence (545 branches) it provides banking services to 2.7mln customers (82% of the Mongolian population) reaching the most remote areas of the country.
What is our funding objective?
Proposed is an investment of up to USD 35mln in the first Green Bond issued by Khan Bank. The total Bond issuance size is expected to be USD 60mln. The funding will be used to exclusively finance or re-finance green projects that comply with the eligibility criteria included in the green bond framework.
Why do we fund this investment?
FMO aspires to build a strong relationship with Khan Bank along the mutual strategy of sustainable commercial development through financing green projects in Mongolia. This will mark a milestone for Khan Bank as well as the banking sector and contributes to the establishment of green bonds as a new asset class in Mongolia.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category B (with IFC PS TT) in accordance with FMO’s Policy. It has a current existing and well-functioning Environmental and Social Risk Management System in place. Khan Bank has dedicated and committed staff in place who continuously work on managing, monitoring and improving the ESMS.
More investments
| Date | Total FMO financing |
|---|---|
| 9/20/2021 | USD 30.85 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 |
- Website customer/investment
- https://www.khanbank.com/en/personal/home/
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 2/8/2023
- Effective date
- 3/16/2023
- Total FMO financing
- USD 35.00 MLN
- Funding
- FMO NV
-
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