EBRD and Mongolia’s Khan Bank sign first co-financing facility
The EBRD and Mongolia’s largest bank Khan Bank have signed a participation agreement for USD 10 million under the EBRD Medium-Sized Co-Financing Facility (MCFF).
“The MCFF is designed to provide co-financing by EBRD for up to 50 per cent of Khan Bank’s loans to selected customers. This will allow Khan Bank to expand its lending capacity providing larger, longer term loans while reducing the risk of single borrower credit concentration. The signing of this agreement is an important part of Khan Bank’s strategy to diversify and develop its financial services and banking products,” EBRD informs.
Khan Bank’s CEO J. Peter Morrow said: “We are very pleased to be expanding our strategic relationship with the EBRD. At an important time in Mongolia’s development, this facility will expand Khan Bank’s ability to meet the growing financial needs of its customers with well structured, longer term loans.”
“This facility is an important step in the further enhancement of our cooperation with Khan Bank, which will enable more businesses to access bank financing and facilitate growth of a medium-sized private sector in Mongolia, ” said Philip ter Woort, Head of the EBRD office in Mongolia.
EBRD has been one of the principal international financial institutions that cooperate with Khan Bank in a number of ways including long term funding, trade finance, and technical assistance.
Khan Bank, with 496 branches across all of Mongolia, provides banking services to an estimated 80 per cent of Mongolian households. As the largest bank in Mongolia, Khan Bank finances corporate, small and medium businesses, consumers, and agriculture.