Mongolia: MON: LOAN TO KHAN BANK

Nonsovereign Project | 41911-014

Summary

The transaction will provide a US dollar-denominated unsecured loan of up to $10 million to Khan Bank in Mongolia with a maturity of six years. The loan will fund Khan Bank's US dollar lending activities, particularly to its corporate clients.

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Project Name MON: LOAN TO KHAN BANK
Project Number 41911-014
Borrower/Company
Country Mongolia
Location Mongolia
Approval Number 7259/2343
Type or Modality of Assistance
7259/2343 Loan US$ 10.00 million Approved
Strategic Agendas
Drivers of Change
Sector / Subsector Finance - Banking systems and nonbank financial institutions - Finance sector development
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Monisha A. Hermans
Project Sponsor(s)
Description The transaction will provide a US dollar-denominated unsecured loan of up to $10 million to Khan Bank in Mongolia with a maturity of six years. The loan will fund Khan Bank's US dollar lending activities, particularly to its corporate clients.
Objectives and Scope ADB's objective in the transaction is to improve financial sector efficiency and depth, and contribute to diversification of the Mongolian economy. The growth of larger corporations is essential to the sustainable diversification of the economy. The growth of coporations is conditional on the availability of corporate lending services and financial services that meet the specific needs of larger companies.
Linkage to Country/Regional Strategy The loan contributed directly to the implementation of ADB's country strategy and program (CSP) by strengthening financial intermediation for businesses and fostering economic diversification. The ADB intervention assists in deepening financial markets and providing long-term finance that meets the needs of entities that are most likely to provide much-needed diversification of the Mongolian economy.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Khan Bank is required to comply with the social and environmental laws and regulations of Mongolia and ADB policies, including the Environment Policy (2002), Involuntary Resettlement Policy (1995) and Policy on Indigenous Peoples (1998).
Involuntary Resettlement Khan Bank is required to comply with the social and environmental laws and regulations of Mongolia and ADB policies, including the Environment Policy (2002), Involuntary Resettlement Policy (1995) and Policy on Indigenous Peoples (1998).
Indigenous Peoples Khan Bank is required to comply with the social and environmental laws and regulations of Mongolia and ADB policies, including the Environment Policy (2002), Involuntary Resettlement Policy (1995) and Policy on Indigenous Peoples (1998).
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 03 Apr 2007
Due Diligence 06 Apr 2007
Credit Committee Meeting -
Approval 02 Aug 2007
PDS Creation Date 04 May 2007
Last PDS Update 16 Sep 2014
Title Document Type Document Date
Senior Unsecured Loan to Khan Bank Extended Annual Review Reports Sep 2013
Proposed Senior Loan to Khan Bank Reports and Recommendations of the President Jul 2007

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