Mongolia’s largest commercial Khan bank to strengthen strategy
The Dutch Development Bank FMO arranged a USD120 million loan to Khan Bank, which is the largest loan in Khan Bank’s history and will strengthen its strategy to reach out to even the most remote areas
Mongolia’s largest commercial Khan bank to strengthen strategy. The Dutch Development Bank FMO arranged a USD120 million loan to Khan Bank, which is the largest loan in Khan Bank’s history and will strengthen its strategy to reach out to even the most remote areas of Mongolia. The financing signals FMO’s long-term commitment to the Mongolian market and is expected to pave the way for additional funding from other financial institutions. The loan will support Khan Bank’s successful growth and will expand access to long term financing for small and medium-sized enterprises. Through its extensive network of 536 branches nationwide, Khan Bank provides banking services to an estimated 70% of Mongolian households. The bank provides comprehensive banking services and access to finance to individuals, small and medium-sized enterprises (SME) and corporate customers in even the most remote areas of the vast country. Khan Bank has been a client of FMO since 2009 and is an important partner in Mongolia. The USD 120 million syndicated loan facility supports Khan Bank's ambition to remain the country’s leading SME and retail bank reaching out to most people in Mongolia. The term facility will also contribute to Khan Bank’s funding stability. In addition to the loan facility, capacity development support will be provided to further strengthen the bank’s environmental and social management system. The inclusiveness and developmental impact of the facility is good through the bank’s strong remote outreach, significant SME portfolio and the bank’s steps to further digitalize banking activities. John Bell, CEO of Khan Bank commented to the occasion, “With shrinking foreign investment in Mongolia due to an economic downturn in recent years, this syndicated loan facility of USD 120 million from leading international financial institutions is critical not only for Khan Bank’s customers, but also for the overall economy. It is a promising manifestation of increasing confidence of investors in Mongolia. Khan Bank is honored to be leading the way forward.”
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