Bogd Bank JSC
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?
Bogd Bank, established in 2014, became the first publicly listed bank on the Mongolian Stock Exchange in December 2021. The Bank employs over 240 people and currently operates through 17 branches, predominantly in Ulaanbaatar. It provides a diverse range of financial products with a strong focus on lending to the SME segment.
What is our funding objective?
The financing facility is a senior loan of USD 20 million for a tenor of five years. At least thirty percent (30%) of the funding will be used to support the Bank’s green initiatives as per FMO Green label. The remainder seventy percent (70%) will be dedicated to sub loans to underserved small and medium-sized enterprises (SMEs) such as women-owned, youth-owned, and agribusiness SMEs (FMO Reducing Inequalities label).
Why do we fund this investment?
The facility promotes financial inclusion and climate action goals. Development of SMEs is critical for the diversification of Mongolia’s economy which relies heavily on the mining industry. The Green finance component will support initiatives that contribute to environmental sustainability.
What is the Environmental and Social categorization rationale?
The project has been categorized as E&S Category B, in accordance with FMO’s Sustainability Policy. Bogd Bank has limited exposure to high-risk sectors and no exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. It has a functioning Environmental and Social Risk Management System in place.
- Website customer/investment
- https://www.bogdbank.com
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 1/15/2025
- Effective date
- 12/11/2024
- Total FMO financing
- USD 20.00 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