FMO, together with Triodos Investment Management closed a USD 35 million club deal for Khan Bank in Mongolia. FMO will provide USD 25 million, while Triodos Investment Management will provide USD 10 million loan. The transaction helps boost development of Mongolia’s capital market and its SME sector. Khan Bank is the second largest Mongolian bank and largest private sector bank, with total assets of USD 2.6 billion and more than 500 branches throughout the country, providing banking services to 70% of all Mongolians. Khan Bank has a strong focus on SMEs and retail customers and has a wide reach thanks to its extensive network of rural branches. In small provincial towns and rural areas, Khan Bank is often the only commercial bank active.
The facility strengthens Khan Bank’s capital position, further increasing its ability to meet loan demand from Mongolian SMEs and corporate clients. This is FMO’s third loan to Khan Bank since 2009 and is provided in a time Mongolia faces macro-economic challenges. Despite these difficult circumstances, Khan Bank continues to perform well, which has resulted in this new facility from FMO. For Triodos Investment Management it is the first loan to Khan Bank.