Khan Bank Rural Inclusive Finance and Agriculture Value-Addition Project (ADB-59184-001)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 4, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Khan Bank JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Apr 17, 2026

Disclosed by Bank Dec 4, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the ADB funded transaction will provide a senior loan to Khan Bank for on-lending to (i) rural businesses, including micro, small and medium-sized enterprises (MSMEs), women-owned enterprises, farmers and herders; and (ii) agriculture processing and logistics enterprises. Loan proceeds will also support sustainable agriculture activities in accordance with the Mongolia Green Taxonomy.

The project aims to improve access to finance for rural businesses, farmers and herders, and expand the share of green loans in Khan Bank's portfolio. The project aims to boost agricultural value addition and export earnings by funding rural MSMEs, herders, farmers and agricultural and livestock processing enterprises. In addition, the project is expected to stimulate demand for farm and livestock production and thereby improve the income of herders and small farmers.

 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Khan Bank has been implementing an ADB-compliant environmental and social management system (ESMS). Khan Bank's existing and proposed lending portfolios have minimal site-specific environmental impacts. Khan Bank will exclude lending to projects classified as category A for environmental impacts.

Khan Bank's current lending operations are unlikely to entail impacts on involuntary resettlement. Khan Bank will exclude lending to projects categorized A or B for involuntary resettlement.

Khan Bank's current lending operations are unlikely to entail impacts on Indigenous peoples. Khan Bank will exclude lending to projects categorized A or B for Indigenous Peoples.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The financing amount is $100,000,000, which will be financed on a loan basis by ADB’s ordinary capital resources.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Khan Bank JSC 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.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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