Mongolia’s XacBank today signed an Accreditation Master Agreement (AMA) with the Green Climate Fund, setting out its partnership with GCF to forge low-emissions and climate-resilient development paths in Asia.

“There is a big potential in Mongolia for businesses to generate profits by introducing new economically and environmentally sustainable ways of doing things,” said Mr. Amartuvshin Hanibal, President of XacBank on the sidelines of GCF’s 15th Board meeting. “This marks an important milestone for the development of the Eco Banking line of business at our Bank,” he explained. “The agreement will help our bank create new links between profits and low-carbon development.”

GCF Executive Director ad interim Javier Manzanares, signing the agreement on behalf of the Fund, said: “Encouraging private sector investment is a key way in which GCF is leveraging its climate finance resources.”

Beginning in 2001 as a merger between micro-financing to help employ people, and a provider of loans to medium enterprises, XacBank is now one of Mongolia’s most prominent banks. The Banker magazine presented XacBank the best bank in Mongolia of 2016 award during a ceremony in London earlier this month.

XacBank was accredited to GCF as a direct access private sector entity earlier this year. It is the first commercial bank to sign an AMA with the Fund.