📋 Tender Overview
Website customer/investment
https://www.bogdbank.com
Region
Asia
Country
Mongolia
Sector
Financial Institutions
Publication date
1/15/2025
Effective date
12/11/2024
Total FMO financing
USD 20.00 MLN
Funding
FMO NV
Environmental & Social Category
(A, B+, B or C)
B
Who is our customer
Bogd Bank, established in 2014, became the first publicly listed bank on the Mongolian Stock Exchange in December 2021. The Bank employs over 240 people and currently operates through 17 branches, predominantly in Ulaanbaatar. It provides a diverse range of financial products with a strong focus on lending to the SME segment.
What is our funding objective
The financing facility is a senior loan of USD 20 million for a tenor of five years. At least thirty percent (30%) of the funding will be used to support the Bank’s green initiatives as per FMO Green label. The remainder seventy percent (70%) will be dedicated to sub loans to underserved small and medium-sized enterprises (SMEs) such as women-owned, youth-owned, and agribusiness SMEs (FMO Reducing Inequalities label).
Why do we fund this investment
The facility promotes financial inclusion and climate action goals. Development of SMEs is critical for the diversification of Mongolia’s economy which relies heavily on the mining industry. The Green finance component will support initiatives that contribute to environmental sustainability.
What is the Environmental and Social categorization rationale
The project has been categorized as E&S Category B, in accordance with FMO’s Sustainability Policy. Bogd Bank has limited exposure to high-risk sectors and no exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. It has a functioning Environmental and Social Risk Management System in place.
