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Supporting women’s entrepreneurship in Mongolia with Khan Bank
Project
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Signature date
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Location
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Mongolia
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Financing tool
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Financing amount (Euro)
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28 392 958,55
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Customer
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Khan Bank LLC
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Type of customer
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Financial institution
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Country of headquarters
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Mongolia
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Project number
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PMN101601
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Environmental and social ranking
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IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has subscribed to a social bond issued by Khan Bank to support its financing for women entrepreneurs and the climate.
Client presentation
Founded in 1991 as the Agricultural Cooperative Bank, then privatized in 2003, Khan Bank has been Mongolia’s largest bank for 33 years, with a market share of 32% of total assets. Khan Bank has been listed on the Mongolian Stock Exchange (MSE) since April 2023.
Project description
The operation involves Proparco’s subscription to a social bond issued by Khan Bank, the first-ever in Mongolia. As lead investor, IFC has subscribed $100 million and Proparco $30 million. The funds from Proparco’s subscription will be used for SMEs (35%), women-owned SMEs (35%), and to finance affordable housing (30%).
Project impact
The expected impacts of this financing are as follows:
Employment
- 6,900 jobs supported over the next 5 years in the companies financed by the bank (indirect jobs)
Start-ups & SMEs
- More than 390 microenterprises and 430 SMEs supported (35% of Proparco’s financing)
Gender
- Contribution to gender equality through a commitment to finance companies aligned with the 2X Challenge (35% of Proparco’s financing). Proparco’s financing is aligned with the 2X Challenge on the basis of the criteria 3 (Employment), 5 (Products and services) and 6 (Portfolio)
Access
- Support for new or improved access to affordable housing over the next 5 years, with more than 1,280 beneficiaries (30% of Proparco’s financing)
The project will thereby contribute to the achievement of SDG 5 “Gender equality”, SDG 8 “Decent work and economic growth”, SDG 10 “Reduced inequalities” and SDG 11 “Sustainable cities and communities”.