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projectFP028

Business loan programme for GHG emissions reduction

1194324
TONNES of CO2 Anticipated tonnes of CO2 equivalent avoided

Impact

Mitigation
GCF results areas
  • Energy generation and access
  • Buildings, cities, industries and appliances
Gender benefits The programme aims to provide at least 50 per cent of its financing to women-led MSMEs in Mongolia. UN Sustainable Development Goal #7 Affordable and clean energy

Location & People

Region
  • Asia Pacific
Country
  • Mongolia MN

Investment Data

  • Financing:
    • Public
    • Private
  • Project size:
    • Micro
    • Small
    • Medium
    • Large
  • E&S Risk category:
    • Category I1
    • Category I2
    • Category I3
Total project investment
GCF Financing
  • Instrument Loan USD
  • Instrument Grant USD
Co-Financing
  • Global Climate Partnership Fund Loan USD
  • EBRD Loan USD
  • DWM Securitizations Loan USD

Project owners

Accredited Entity Executing Entity
  • XacBank LLC
Business loan programme for GHG emissions reduction Approved December 2016 Duration 5.0 years
Supporting Mongolian enterprises embrace energy efficiency and renewable energy.

Ninety percent of Mongolian businesses are run by Micro, Small and Medium-Sized Enterprises (MSMEs). The majority of these enterprises use outdated and inefficient equipment, processes and buildings - resulting in relatively large emissions of greenhouse gases. One of the main barriers to low-carbon innovation is financial. The lack of accessible commercial finance by local banks impedes the ability of Mongolian enterprises to invest in energy efficiency and renewable energy.

This programme will provide XacBank, one of Mongolia’s leading banks, with an enhanced ability to support loans to Mongolian enterprises investing in energy efficiency and renewable energy projects. GCF’s USD 20 million contribution will be blended with other financial sources to fund low-carbon projects. This will help Mongolian enterprises adopt enduring, low-carbon business models - and help alleviate the current prevalence of high financing costs and relatively short-term loan periods.

In accordance with GCF’s gender focus, at least half of the financial support will go towards women-led MSMEs.
Document title Published date
Funding proposal 24 Nov 2016
ESS report 30 Nov 2016
Accredited Entity
  • XacBank LLC (XacBank) Tuul Galzagd Tel: +976 7577 1888 (ext.707) Anand Batsukh Tel: +976 7577 1888 (ext.703)
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