MARKET DEVELOPMENT

• Improve access to finance for MSMEs: Despite representing 77% of registered businesses, contributing to 18% of GDP and providing 70% of employment in Mongolia¹, MSMEs face a significant financing gap of $1.27B, equivalent to 9.8% of GDP². Through Khan Bank’s comprehensive range of financial products and services, the Bank is well-positioned to support Mongolia’s MSMEs through its nationwide network of branches and its dedicated financial products. To contribute to closing the financing gap, 40% of FinDev Canada’s proceeds will support Khan Bank’s MSME clients.

¹ Asian Development Bank, 2023. Rebuilding Micro, Small, and Medium-Sized Enterprises Post-COVID-19 in Mongolia (ADB Brief 266)
² SME Finance Forum, 2019. MSME Finance Gap | SME Finance Forum

GENDER EQUALITY

• Improve access to finance for WMSMEs: WMSMEs represent 40% of Mongolia’s entrepreneurial landscape³, however, they face significant barriers in accessing finance compared to their male peers, ranging from stringent collateral requirements to elevated interest rates⁴. With a gender loan portfolio of $475.8M as of 1H2025, Khan Bank has a track record in supporting WMSMEs. The Bank offers gender‑focused financial products and services such as interest rate waivers and flexible collateral requirements, alongside non‑financial support including the Women Entrepreneurship Program.
• 2X‑qualification: This transaction is 2X qualified under the Employment and the Portfolio criteria. Women’s representation in the Bank’s workforce is above the 45% 2X threshold and as part of this transaction, 30% of FinDev Canada’s proceeds will be earmarked for the Bank’s lending to WMSMEs.

CLIMATE AND NATURE ACTION

• Support climate mitigation and adaptation activities: To fulfil its NDC commitments, Mongolia requires an estimated $6.3B for climate mitigation, and $5.2B for adaptation by 2030⁵. Khan Bank is leading the way in advancing green finance in Mongolia, with the Bank holding a majority of the country’s green market share. Khan Bank has a green loan portfolio of $290.4M as of 1H2025 and provides a range of climate mitigation and adaptation loan products to its clients. This transaction will allocate 30% of FinDev Canada’s proceeds to climate finance eligible activities in the Bank’s portfolio.

³ SME Finance Forum, 2019. MSME Finance Gap | SME Finance Forum
⁴ IFC, 2025. Investing in Mongolia’s Women Entrepreneurs
⁵ UNFCCC, 2020. First Submission of Mongolia’s NDC.pdf