EBRD invests $12.5m in Mongolia’s Khan bank green bond

The European Bank for Reconstruction and Development (EBRD) has invested US$12.5 million (€11.5 million) in a green bond issuance by Khan Bank in Mongolia, part of a larger US$30 million offering.

This marks EBRD’s first investment in a green bond in Mongolia, supporting the country’s largest commercial bank’s inaugural bond listed on the Mongolian Stock Exchange.

Aligned with the International Capital Market Association’s Green Bond Principles, the bond will enhance Khan Bank’s corporate climate governance and promote transparency in Mongolia’s green capital market.

Proceeds will fund projects in renewable energy, energy efficiency, green buildings, and clean transport, contributing to Mongolia’s goal of reducing greenhouse gas emissions by 22.7 per cent before 2030.

The Asian Development Bank is also expected to invest a similar amount in Khan Bank’s green bond, reflecting international financiers’ confidence in the bank and its efforts to diversify its funding.

Since 2007, Khan Bank has been an EBRD client and operates 540 branches across Mongolia. To date, EBRD has invested €2.4 billion across 145 projects in Mongolia, with approximately 90 per cent of funds directed to private-sector companies.