Khan Bank JSC

In brief

Finnfund has made a USD 15 million investment into Khan Bank in Mongolia as part of a USD 200 million multi-currency FMO led syndication facility, alongside FMO and CDP, Italian’s DFI and a group of private and impact investors. Khan Bank is the leading and largest universal bank in Mongolia, playing a pivotal role in the country’s banking sector and is known for its strong customer-centric approach, leadership in sustainable finance and leading market position. It serves more than 82% of Mongolian’s population through an extensive network of over 47 branches and diverse digital channels. Its comprehensive banking services reach individuals, SMEs and corporate customers across both urban and remote regions in Mongolia, driven by a strategic focus on digitalization, rural enterprise support and sustainability. The Bank holds a B3 rating from Moody's and a B+ rating from Fitch, both with a stable outlook. Khan Bank has made significant strides in sustainable finance, including the launch of Mongolia's first green bond in 2023, followed by the issuance of the country's first social bond in 2024. The investment is 2X Challenge-aligned, where FMO and Finnfund will allocate over 30% of their loan and CDP contributing 30% of half of their loan, to women-owned or women-led enterprises, meeting the 2X Challenge criteria. The loan proceeds are targeted towards green financing 30% and the remainder 70% towards Women/Youth/Agri SMEs and certified SMEs in the sustainable cashmere industry. The loan will support the Bank’s strategy and its mission to build a greener, more inclusive Mongolia.

Main development impact

Investment details

Please note, that in principle, this information is given at the time of signature according to Finnfund's disclosure policy. However, in the case of investment funds, the share of Finnfund’s financing (%) is disclosed after the fund’s final closing, and information on the portfolio companies financed by the fund is updated at least once a year.