Khan Bank JSC
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
Khan Bank JSC (Khan Bank) is Mongolia’s largest commercial bank, representing one third of the country's banking sector. Through its extensive network of 545 branches and digital channels nationwide, Khan Bank provides banking services to an estimated 84% of Mongolian population as of 2025. The bank provides comprehensive banking services and access to finance to individuals, small and medium sized enterprises and corporate customers in even the most remote areas of Mongolia. Khan Bank is a long-standing client of FMO since 2009 with good track record.
What is our funding objective?
The facility is structured as a multi-currency senior unsecured A/B syndicated loan of USD 172 mln, with FMO as the lead Arranger, Agent and Lender, committing USD 97 mln of which USD 80 mln is in local currency (MNT). This syndicated facility mobilized funds from A-Lenders (Finnfund and IFDK) and B-participants as well as via FMO IM serviced funds, thereby diversifying the bank’s funding sources.
Why do we fund this investment?
With this long-term multicurrency transaction, FMO aims to support Khan Bank’s long-term sustainability strategy and funding stability introducing new investors to Khan Bank. The LCY portion will reduce currency mismatches and dependency on the limited hedging opportunities in Mongolia. Funds mobilized from private and DFI capital will support the bank in promoting access to finance towards underserved groups (Women, Youth, Rural, Agriculture SMEs and Micro-enterprises) while also contributing to green financing. The facility will support green projects as per FMO Master Green List, and Women, Youth, Agriculture, and Rural SMEs as well as Micro-enterprises. 16% of FMO’s investment is labelled as Green, as it will be earmarked towards eligible Green categories in line with FMO’s Master Green List, contributing to SDG 13. 100% of FMO’s investment is labelled as Reducing Inequalities, as it supports activities that contribute to Gender Lens Investing and Inclusive Growth, contributing to SDG 10 and SDG 5.
What is the Environmental and Social categorization rationale?
Khan Bank has been categorized as an FI-B client in accordance with FMO’s Sustainability Policy. The Bank has a functioning Environmental and Social Management System (ESMS), supported by dedicated Environmental and Social (E&S) specialists who are responsible for integrating E&S considerations into the credit decision-making process. The ESMS includes the application of the European Development Finance Institutions (EDFI) Exclusion List, compliance with applicable Mongolian environmental and social laws and regulations, and the IFC Performance Standards framework for applicable Triggered Transactions.
More investments
- Website customer/investment
- https://www.khanbank.com/en/personal/home/
- Region
- Asia
- Country
- Mongolia
- Sector
- Financial Institutions
- Publication date
- 11/4/2026
- Effective date
- 10/5/2026
- Total FMO financing
- USD 17.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B
- Loan participation
- NA