Ulaanbaatar, Mongolia, June 15, 2011—
IFC, a member of the World Bank Group, will provide $20 million to Khan Bank LLC, Mongolia’s biggest bank by assets, to help strengthen its capital position and increase lending to small and medium enterprises.
IFC’s seven-year subordinated loan will allow the bank to offer up to 14,000 new loans to small and medium enterprises by the end of 2015. IFC’s investment will also help the bank maintain adequate capital and support its sustainability and development.
IFC is the third-largest shareholder in Khan Bank, owning a 9.1 percent stake.
“IFC’s investment demonstrates its continued commitment as a shareholder of the bank and reaffirms its intention to provide long-term support to Mongolia’s banking sector,” said Simon Morris, Chief Executive Officer of Khan Bank.
Since becoming an IFC client in 2004, Khan Bank has grown to become the largest bank in Mongolia by assets and branch network, reaching about 80 percent of Mongolian households. More than 50 percent of its borrowers are women.
“A strong banking system is essential to support the country’s economy and Khan Bank is becoming a role model for reform in Mongolia’s banking system,” said Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia. “IFC’s continued partnership with Khan Bank will help provide access to finance for small and medium enterprises to create more jobs and support Mongolia’s transition to a stable market economy
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About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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