GCF GEFF Regional - Mongolia - Khan Bank II (EBRD-55422)

Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
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
U
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
Apr 30, 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
Khan Bank JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • 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)
$ 7.50 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)
$ 7.50 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)
$ 10.00 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.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jul 2, 2024

Disclosed by Bank May 2, 2024

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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 EBRD; the project consists of the provision of a senior unsecured GEFF loan of up to USD 10 mln (EUR 9.2 mln), of which up to USD 7.5 mln from EBRD and up to USD 2.5 mln from GCF, under the GCF Green Economy Financing Facility (GEFF) Framework. Tenor is up to 3 years, including a 1.5 year-grace period.

The proceeds of the loan will be used for financing investments in climate change mitigation and adaptation technologies and services in line with the standards and reporting requirements for the GCF-GEFF Regional Framework.

The project contributes to the objectives of the GCF-GEFF Regional Framework, supporting the Green TI quality, with 100 per cent of the use of proceeds allocated to GET activities in line with the GCF-GEFF Mongolia Policy Statement. The GEFF loan will contribute to GCF-GEFF Mongolia objective of building a green economy in Mongolia by facilitating the accelerated market penetration of climate technologies, particularly focusing on promotion of renewable energy, energy efficiency and climate resilient technologies, including solar PV, solar thermal, heat pumps and biogas technologies. Another focus area is energy efficiency measures in residential and commercial buildings.

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 EBRD categorized the project E&S risks as 'FI'.

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

According to the EBRD, the project cost is USD 10 million, of which up to USD 7.5 million to be provided by the EBRD and up to USD 2.5 million by the Green Climate Fund.

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.

As stated by the EBRD, Khan Bank JSC is the largest commercial bank in Mongolia, providing services to more than 82 per cent of the population through its digital banking channels and a network of 540 branches across the country. As of YE 2023, the bank's total assets reached USD 5.1 billion, with loan portfolio of USD 2.8 billion, and equity of USD 612.7 million. KB is currently rated "B3/stable" by Moody's and "B/stable" by Fitch, at par with the sovereign.


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.

Financial Intermediary - Khan Bank JSC:

Bolortuya B. - Director of International Banking Department
Email: bolortuya.b@khanbank.com
Phone: +976 11 332 333
Fax: +976 70 117 023
Website: www.khanbank.com
Address: Khan Bank Tower, Chinggis Avenue-6, Stadium Orgil-1, Khan-Uul District, Ulaanbaatar 17010, Mongolia

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works