Symbiotics Investments, a Switzerland-based investor focused on smaller businesses in low- and middle- income countries, recently facilitated a bond issue channeling USD 10 million to Khan Bank, which serves individuals and companies of all sizes in Mongolia, to support UN Sustainable Development Goal (SDG) 5: Gender Equality. Impact Asset Management (I-AM), a unit of Austria’s C-Quadrat Investment Group, bought the bond through its Vision Microfinance Dual Return Fund. Khan plans to use the proceeds to on-lend to small and medium-sized enterprises (SMEs) managed or owned by women, including via “new loan products that are specifically aimed to support productivity, competitiveness and financial access of women entrepreneur clients.”
Erdenedelger Bavlai, Khan’s Deputy CEO, said, “This issuance of the gender-focused bond demonstrates our unwavering dedication to social progress. By focusing on gender-related issues, we aim to create opportunities for a more equitable and prosperous future.”
Established in 1991, Khan provides microfinance and traditional banking services to 2.5 million clients via online channels and 547 branches. Its service menu includes deposits, loans, international transfers, escrow services and payment cards. The bank is privately owned by Sawada Holdings of Japan and Tavan Bogt Trade of Mongolia. As of 2022, Khan reported total assets of MNT 15 trillion (USD 4.3 billion).
Selected share classes of the Vision Microfinance Fund generated returns of 0.25 percent to 0.45 percent during May 2023. As of 2021, the fund and its local-currency sibling fund, Vision Microfinance Fund Local Currency, held assets valued at a total of EUR 677 million (USD 734 million).
I-AM, which was founded in the city of Vienna in 2006, “focuses on sustainable investments and microfinance products.” As of December 2022, it reports assets under management totaling EUR 3.5 billion (USD 3.8 billion).
C-Quadrat was founded in 1991 and since has built its portfolio to a valuation of EUR 8 billion (USD 8.7 billion).
Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of micro-, small and medium-sized enterprise development as well as lenders to lower income households in lower income countries. Since its inception, Symbiotics has facilitated 7,300 investments, and the organization reports assets under management of USD 2.9 billion as of 2023.
By Ben Barba, Research Associate
Sources and Additional Resources
Symbiotics press release
https://symbioticsgroup.com/symbiotics-investments-provides-a-usd-10-million-gender-focused-bond-to-khan-bank-in-mongolia/
Khan homepage
https://www.khanbank.com
Vision Microfinance homepage
https://www.visionmicrofinance.com
I-AM homepage
https://www.impact-am.eu
C-Quadrat homepage
https://www.c-quadrat.com
UN SDGs
https://www.undp.org/sustainable-development-goals
Previous MicroCapital article on Khan
https://www.microcapital.org/microcapital-brief-khan-bank-borrows-6m-from-microvest-for-smes-in-mongolia/
Previous MicroCapital article on Symbiotics
https://www.microcapital.org/microcapital-brief-tunisie-leasing-and-factoring-borrows-7-5m-from-bii-symbiotics-green-bond-program-for-smes-in-tunisia/
Previous MicroCapital article on Vision Microfinance
https://www.microcapital.org/microcapital-brief-impact-asset-managements-dual-return-vision-microfinance-funds-lend-to-mfis-in-india-china/
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