MICROCAPITAL BRIEF: FMO, Triodos Loan $35m to Khan Bank of Mongolia for On-Lending to Small, Medium-sized Enterprises (SMEs)

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership that aims to promote growth in developing economies, and Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, have announced plans to invest a total of USD 35 million in Khan Bank, a commercial bank based in Mongolia, for on-lending to small and medium-sized enterprises (SMEs) in that country. Under the terms of the agreement, FMO will provide USD 25 million, and Triodos Investment Management will supply the remaining USD 10 million. Further information regarding the terms of the loan is not available.

As of 2013, Khan Bank has total assets of MNT 4.8 trillion (USD 160 billion), a gross loan portfolio of MNT 2.5 trillion (USD 83 billion), deposits of MNT 2.8 trillion (USD 93 billion) and 1.8 million customers.  As of 2014, Triodos Investment Management had EUR 2.4 billion (USD 2.7 billion) in total assets under management; a portion of which is invested in 112 MFIs in 45 countries. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

By Makai McClintock, Research Associate

About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO):
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

About Triodos Investment Management:
Triodos Investment Management BV, a wholly owned subsidiary of Triodos Bank of the Netherlands, manages funds in a range of sectors including financial sector development in developing countries, renewable energy finance and venture capital. As of 2014, Triodos Investment Management had EUR 2.4 billion (USD 2.7 billion) in total assets under management. Among other investments, the organization finances 112 microfinance institutions in 45 countries.

About Khan Bank
Established in 1991, Khan Bank is a Mongolian provider of microfinance and traditional banking services through 512 branches in the country. As of 2013, Khan Bank has total assets of MNT 4.8 trillion (USD 160 billion), a gross loan portfolio of MNT 2.5 trillion (USD 83 billion) and deposits of MNT 2.8 trillion (USD 93 billion) and 1.8 million customers.

Sources and Additional Resources:

FMO Press Release: “Supporting Economic Development in Mongolia,” http://www.fmo.nl/k/n114/news/view/19656/179/supporting-economic-development-in-mongolia.html

MicroCapital Universe Profile: Triodos Investment Management

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

MicroCapital Universe Profile: Khan Bank

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