Business loan programme for GHG emissions reduction
- Energy generation and access
- Buildings, cities, industries and appliances
- #7 Affordable and clean energy
Location & People
- Mongolia MNG
- Public / Private
- Project size:
- E&S Risk category:
- Category I1
- Category I2
- Category I3
- Instrument Loan USD
- Instrument Grant USD
- Global Climate Partnership Fund Loan USD
- EBRD Loan USD
- DWM Securitizations Loan USD
Project ownersAccredited Entity
- Access Modality: Direct (National)
- XacBank LLC
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 The majority of these enterprises use outdated and inefficient equipment, processes and buildings - resulting in relatively large emissions of greenhouse gases.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.
The project has an estimated lifespan of 5 years.
|ESS report||FP028 - XacBank - Mongolia||30 Nov 2016|
|Approved funding proposal||FP028 - XacBank - Mongolia||22 Mar 2017|
|Gender action plan||FP028 - XacBank - Mongolia||06 Jun 2017|
|Gender assessment||FP028 - XacBank - Mongolia||06 Jun 2017|
- XacBank LLC (XacBank) Tuul Galzagd Tel: +976 7577 1888 (ext.707) Anand Batsukh Tel: +976 7577 1888 (ext.703)