Khan Bank JSC
Status: Approved investmentWhy disclosure?
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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 JSC (Khan Bank) is Mongolia's largest commercial bank, representing one-third of the country's banking sector. Through its extensive network of 547 branches and nationwide digital channels, Khan Bank provides banking services to approximately 82% of the Mongolian population as of September 30, 2024. The bank offers 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 Bank has been a long-standing FMO client since 2009 and has a good track record.
What is our funding objective?
The facility is structured as a multi-currency (first of this kind in Mongolia) senior unsecured A/B syndicated loan of USD 200 mln, with FMO as the lead Arranger, Agent, and Lender. This syndicated facility mobilized funds from A-lenders (Finnfund and CDP), B-participants, and via FMO Investment Management serviced funds, diversifying the bank’s funding sources. The facility supports green projects per the FMO Master Green List and Women, Youth, and Agriculture MSMEs, including Certified Cashmere businesses.
Why do we fund this investment?
With this long-term multicurrency transaction, FMO aims to support Khan Bank's long-term sustainability strategy and funding stability by introducing new investors. The local currency (LCY) portion reduces currency mismatches and dependency on Mongolia's limited hedging opportunities. Funds mobilized from private and DFI capital will support the bank in promoting access to finance for underserved groups (Women, Youth, Agriculture SMEs, and Micro-enterprises) while contributing to green financing.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category B (with IFC PS TT) per FMO’s Policy. It has an existing and well-functioning Environmental and Social Risk Management System (ESMS). Khan Bank has dedicated and committed staff who continuously work on managing, monitoring, and improving the ESMS.
More investments
- Website customer/investment
- https://www.khanbank.com/en/personal/home/
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 12/30/2024
- Effective date
- 12/11/2024
- Total FMO financing
- USD 40.00 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