FMO to support Mongolia’s Khan Bank with $120mn syndicated facility

FMO, the Dutch entrepreneurial development bank, announced on September 21 that it has arranged a $120mn syndicated facility for Khan Bank, Mongolia’s leading universal bank and a customer of FMO since 2009. 

An FMO senior loan of $60mn is to contribute to the bank’s funding stability. The facility will be split into two tranches of 5- and 7-year tenors. It is intended to grow Khan Bank’s SME portfolio, while also significantly contributing to financing the green portfolio of the lender's end users. 

Green lending in Mongolia is still in its earlier stages; currently, Khan Bank’s green portfolio is primarily donor-funded, but the bank has ambitions to further grow its green portfolio throughout the country.

Last year, Khan Bank launched its own green loan product to further bolster its green portfolio, but there remain certain barriers such as insufficient information and awareness and lack of capacity building. This will be mitigated through the financial support provided, said FMO.