Photo courtesy of FMO, taken at the 2025 Future of Finance conference
Montreal (Quebec), 15 December 2025 – Canada’s bilateral Development Finance Institution, FinDev Canada, announces the signing of a USD 50 million loan to Khan Bank, the largest commercial bank in Mongolia. The loan is part of a USD 250 million syndicated facility led by FMO, the Dutch entrepreneurial development bank. This represents FinDev Canada's first investment in Mongolia.
FinDev Canada’s loan will support Khan Bank in providing financial services to underserved populations vulnerable to economic or climate shocks, including micro, small and medium-sized enterprises (MSMEs) and women-owned or led MSMEs (WMSMEs).
Mongolia is highly vulnerable to climate change impacts, with its temperatures increasing at nearly three times the global average rate. To fulfill its Nationally Determined Contributions commitments by 2030, the country requires significant investments in both climate adaptation and mitigation. FinDev Canada will direct 30% of the loan proceeds to Khan Bank’s financing of climate mitigation and adaptation activities, including energy efficiency and sustainable agriculture.
MSMEs represent 77% of registered businesses in Mongolia, significantly contributing to economic growth and employment opportunities. However, they continue to face financing constraints due to high interest rates and lack of access to financial services. To improve access to finance, FinDev Canada will direct 40% of the loan proceeds towards Khan Bank’s financing activities to MSMEs.
In parallel, FinDev Canada’s loan supports Khan Bank in advancing women's economic empowerment through tailored financial and non-financial products and services that focus on gender inclusion. As part of its commitment, the Bank seeks to advance its gender-focused loans. FinDev Canada aims to further amplify this effort by directing 30% of the loan proceeds to support Khan Bank’s lending to WMSMEs.
“We are proud to make our first investment in Mongolia by partnering with Khan Bank, alongside FMO. By working together, we can advance climate action, improve financial inclusion, promote gender equality, and support women owned or led businesses. This partnership reflects our shared commitment to maximizing development impact, and supporting Mongolia’s long-term vision for sustainable economic growth,” said Lori Kerr, CEO, FinDev Canada.
“We are delighted to welcome FinDev Canada as a new long-term partner of Khan Bank and extend our appreciation to FMO for its continued support and leadership. This financing will enable us to further scale our efforts in green lending, women’s entrepreneurship, and MSME development—three priorities that lie at the heart of Mongolia’s sustainable growth. We are proud that FinDev Canada’s first investment in Mongolia is being made through Khan Bank, and we look forward to building a strong and lasting collaboration,” said Erdenedelger Bavlai, First Deputy Chief Executive Officer, Khan Bank.
“Working closely with our partners to scale and mobilize finance for sustainable development impact is at the core of FMO’s 2030 strategy. We are proud to have fostered this new partnership between our longstanding partner Khan Bank and our trusted ally FinDev Canada through this syndicated facility and are thankful for their great collaboration and shared commitment to financial inclusion and climate action,” said Annemieke Mokveld, Head of Syndications, FMO.
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and advisory, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. Find out more about FinDev Canada at www.findevcanada.ca.
About Khan Bank
Khan Bank is Mongolia’s largest commercial bank, serving around 82% of the country’s population through the nation’s widest branch and digital network. A leader in digital transformation and sustainable finance, the Bank drives innovation through AI-powered services and green, gender, and SME financing programs. Guided by its “Growing Together” vision, Khan Bank remains committed to responsible banking, transparency, and expanding access to reliable financial services nationwide.
Media Contact
FinDev Canada: Media@findevcanada.ca