Early Warning System

Regions

Europe and Central Asia

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

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

Feb 20, 2024

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

Bogd Bank JSC

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance
Industry and Trade

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)

$ 15.00 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.

Loan Amount (USD)

$ 15.00 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)

$ 15.00 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 15, 2024

Disclosed by Bank Jan 30, 2024

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Can you contribute information about this project?
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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 project diclosure, the ADB will provide a senior unsecured loan of up to $15 million with a tenor of up to 3 years to Bogd Bank to fund subloans to MSMEs. The ADB Loan comprises two tranches: (a) tranche A of $14 million for multi-sector finance to MSMEs with a minimum of 50% to be disbursed to WMSMEs; and (b) tranche B of $1 million for climate finance to MSMEs.

By improving access to finance, the project will support the expansion of MSMEs and diversification of the economy, which will contribute to employment and poverty reduction in Mongolia. The project will also promote green lending activities to MSMEs.

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.

The ADB categorized the project E&S risks as follows:

Environment	FI
Involuntary Resettlement	FI-C
Indigenous Peoples	FI-C

Investment Description

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

Asian Development Bank (ADB)

As stated by the ADB, out of the US$ 15.00 million, US$ 1.00 million will be provided by the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), a fund fully administered by the ADB.

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.

Bogd Bank JSC (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.

As stated by the ADB, established in 2014, Bogd Bank became the first publicly listed bank on the Mongolian Stock Exchange (MSE) in December 2021. From a small base, Bogd Bank achieved a CAGR of 45.1% in total assets from 2017 to 2022—significantly higher than the industry average of 9.2%. As of the second quarter of 2023, Bogd Bank had total assets of MNT589 billion, including MNT284 billion in gross loans. Bogd Bank is a small bank, accounting for about 1% of the banking industry’s total assets. The bank has increased its focus on MSME lending to women in manufacturing, trade, agriculture, health care, and businesses.

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.

ADB Team Leaders:

Biao Huang - Principal Investment Specialist
Peter Rosenkranz - Financial Sector Specialist

No contacts provided at the time of disclosure.

Financial Intermediary - Bogd Bank JSC:

Phone: +976 7577 1199
Email: info@bogdbank.com
Website: https://www.bogdbank.com/

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.