Ulaanbaatar, Mongolia, October 22, 2013—IFC,
a member of the World Bank Group, and IFC Capitalization Fund have mobilized
up to $111 million in financing for Khan Bank, Mongolia’s biggest lender.
This investment will boost Khan Bank’s capital base and expand access
to finance for small and medium enterprises.
IFC will commit a $10 million senior loan and the IFC Capitalization Fund,
managed by the IFC Asset Management Company, will provide a $40 million
subordinated loan to strengthen the Mongolian lender’s capital base.
In addition, IFC has mobilized funding from other financial institutions.
The International Investment Bank has committed a $10 million parallel
loan. Other institutions including AKA Export Finance Bank, DHB Bank (Nederland)
N.V., ING Bank N.V., Intesa Sanpaolo S.p.A., RosEvroBank JSCB, and Sumitomo
Mitsui Banking Corporation have committed syndicated loans of $31 million.
The OPEC Fund for International Development is finalizing the commitment
of another $20 million parallel loan.
“We are delighted to continue our strong relationship with IFC whose support
has enabled us to diversify and improve our long-term funding base,” said
Norihiko Kato, Khan Bank’s chief executive officer.
The financing signals IFC’s long-term confidence in the Mongolian market
and is expected to pave the way for additional funding from other financial
institutions. Furthermore, the deal marks the first IFC-arranged syndication
“IFC is increasing its investment and support for Mongolia’s banking
sector to help the country sustain its long-term economic growth,” said
Tuyen Nguyen, IFC’s resident representative in Mongolia. “The financing
mobilized by IFC will help ensure that more of Mongolia’s 2.8 million
people benefit from the country’s development and advance the World Bank
Group’s twin goals of ending extreme poverty by 2030 and boosting shared
prosperity in developing countries.”
IFC became Khan Bank’s shareholder in 2004, providing financing and advisory
services over the past 10 years. Khan Bank is the largest bank in Mongolia
in terms of assets with a network that reaches about 80 percent of Mongolian
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
About IFC Asset Management Company
A wholly-owned subsidiary of IFC, IFC Asset Management Company, LLC is
IFC's fund management arm. AMC invests third-party capital alongside IFC,
enabling outside investors to benefit from IFC’s expertise in achieving
strong returns, as well as positive development impact, in the countries
in which it invests. AMC manages over $6 billion of capital across six
investment funds, including one fund of funds.
About IFC Capitalization Fund
The IFC Capitalization Fund is a global equity and subordinated debt fund
supported by commitments from IFC and the Japan Bank for International
Cooperation. It aims to strengthen banks considered vital to the financial
system of emerging markets.
About Japan Bank for International Cooperation
Japan Bank for International Cooperation (JBIC) is a policy-based financial
institution wholly owned by the Japanese government. JBIC has the purpose
of contributing to the sound development of Japan and the international
economy and society, by taking responsibility for the financial function
to promote the overseas development and securement of resources which are
important for Japan, to maintain and improve the international competitiveness
of Japanese industries and to promote the overseas business having the
purpose of preserving the global environment, while having the objective
of supplementing the financial transactions implemented by ordinary financial
institutions. JBIC also provides the financial services that are necessary
to prevent disruptions to international financial order or to take appropriate
measures with respect to damages caused by such disruption. For more information,