GCF GEFF Regional – Mongolia

Venture Description

The supply of a 3-year senior mortgage to XacBank LLC within the quantity of as much as US$ 25 million, of which as much as US$ 18.75 million to be supplied by the EBRD and as much as US$ 6.25 million by GCF below the GCF – Inexperienced Economic system Financing Facility (GEFF) Regional Framework.

Venture Goals

The proceeds of the mortgage can be used for financing investments in local weather change mitigation and adaptation applied sciences and companies in step with the requirements and reporting necessities for the GCF-GEFF Regional Framework.

Transition Affect

ETI rating: 65

The venture contributes to the aims of the GCF-GEFF Regional Framework, supporting the Inexperienced TI high quality, with 100 per cent of using proceeds allotted to GET actions in step with the GCF-GEFF Mongolia Coverage Assertion. The GEFF mortgage will contribute to GCF-GEFF Mongolia goal of constructing a inexperienced financial system in Mongolia by facilitating the accelerated market penetration of local weather applied sciences, significantly specializing in promotion of renewable vitality, vitality effectivity and local weather resilient applied sciences. One other focus space can be vitality effectivity measures in residential and industrial buildings.

Shopper Info

XAC BANK LLC

XacBank is the fifth largest industrial financial institution in Mongolia with complete property of US$ 1.1 billion, mortgage portfolio of US$ 657 million, and fairness of US$ 138 million as of 2Q 2022. The financial institution is at the moment rated “B3” by Moody’s and “B” by Fitch, each with a steady outlook. XacBank has a common focus and a nationwide presence within the nation by means of 78 branches. 

EBRD Finance Abstract

USD 18,750,000.00

A senior mortgage of as much as US$ 18.75 million.

Complete Venture Price

USD 25,000,000.00

US$ 25 million, of which as much as US$ 18.75 million to be supplied by the EBRD and as much as US$ 6.25 million by the Inexperienced Local weather Fund (“GCF”).

Additionality

The EBRD affords an revolutionary inexperienced finance instrument that integrates points comparable to local weather and environmental, social and governance (ESG) requirements, and/or local weather and ESG danger concerns into the financing construction.

XacBank will profit from the EBRD experience in vitality and useful resource effectivity and local weather resilience financing through vitality and local weather audits, minimal efficiency requirements of applied sciences, local weather associated methods and insurance policies, monitoring, reporting and verification (MRV) techniques and so forth.

Provision of long-term funding. There’s a very restricted variety of personal sector lenders offering long run monetary assets to monetary establishments for local weather change mitigation and adaptation investments, in a gender-responsive means, or with a selected give attention to ladies’s entrepreneurship. 

Environmental and Social Abstract

Categorised FI (2019 ESP). XacBank’s is an present consumer of the EBRD has adopted an Environmental Coverage and Environmental and Social Procedures that happy the necessities of Efficiency Necessities 2, 4 and 9 below earlier insurance policies. XacBank might want to adjust to PRs 2, 4 & 9 and additional adjust to the EBRD’s Environmental and Social Procedures for Company Loans, SME and Micro Loans, and TFP Environmental and Social Procedures; adhere to the up to date the EBRD’s Environmental and Social Exclusion Checklist in addition to Referral Checklist launched with ESP 2019 and submit Annual E&S Studies to the Financial institution. XacBank’s debtors can be required to adjust to relevant nationwide environmental, well being and security and labour necessities. 

Beneficiaries financed below the GEFF mortgage will additional be required to adjust to the E&S eligibility standards for Power Effectivity, Useful resource Effectivity, Renewable Power tasks in addition to different GET eligibility standards as per the Coverage Assertion. These necessities can be confirmed by a Guide engaged by the EBRD. 

Technical Cooperation and Grant Financing

The venture can be supported below the GEFF Mongolia TC package deal of as much as € 6 million, of which € 4.5 million is secured (funded by the EBRD Shareholders Particular Fund, the GCF, and Japan), with the remaining € 1.5 million to be sourced at a later stage.

The target of the TC is to help XacBank with capability constructing, implementation and monitoring of the Mortgage. The marketing consultant will switch know-how and lift consciousness about local weather change mitigation and adaptation applied sciences in industrial operations; present venture appraisal assist and information sub-borrowers to most optimum know-how decisions.  A separate gender TC task (“Implementation and Monitoring of the Gender Motion Plan below the Inexperienced Economic system Financing Facility”) can even be applied in parallel to assist handle gender-specific provide and demand obstacles associated to the design and advertising of inexperienced lending merchandise.

Shopper contribution: XacBank will make a parallel contribution in direction of advertising and coaching prices related with the implementation of the venture within the quantity of not lower than € 5,000.

Firm Contact Info

Mr Erdenebayar Ganzorig
erdenebayar.g@xacbank.mn
+(976) 7577-1888 (+826)
+(976-11) 328701
https://www.xacbank.mn/en
Worldwide Industrial Middle /ICC/
Jamiyan Gun Road-9
Put up Workplace No.20A, P.O.Field-72
Ulaanbaatar-14210, Mongolia

PSD final up to date

31 Aug 2022

Understanding Transition

Additional info relating to the EBRD’s strategy to measuring transition influence is accessible right here.

Enterprise alternatives

For enterprise alternatives or procurement, contact the consumer firm.

For enterprise alternatives with EBRD (not associated to procurement) contact:

Tel: +44 20 7338 7168

E mail: projectenquiries@ebrd.com

For state-sector tasks, go to EBRD Procurement:

Tel: +44 20 7338 6794

E mail: procurement@ebrd.com

Basic enquiries

Particular enquiries will be made utilizing the EBRD Enquiries type.

Environmental and Social Coverage (ESP)

The ESP and the related Efficiency Necessities (PRs) set out the methods during which the EBRD implements its dedication to selling “environmentally sound and sustainable improvement”.  The ESP and the PRs embody particular provisions for purchasers to adjust to the relevant necessities of nationwide legal guidelines on public info and session in addition to to ascertain a grievance mechanism to obtain and facilitate decision of stakeholders’ issues and grievances, particularly, about environmental and social efficiency of the consumer and the venture. Proportionate to the character and scale of a venture’s environmental and social dangers and impacts, the EBRD moreover requires its purchasers to reveal info, as applicable, in regards to the dangers and impacts arising from tasks or to undertake significant session with stakeholders and take into account and reply to their suggestions.

Extra info on the EBRD’s practices on this regard is ready out within the ESP.

Integrity and Compliance

The EBRD’s Workplace of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the best requirements of integrity are utilized to all actions of the Financial institution in accordance with worldwide finest follow. Integrity due diligence is performed on all Financial institution purchasers to make sure that tasks don’t current unacceptable integrity or reputational dangers to the Financial institution. The Financial institution believes that figuring out and resolving points on the venture evaluation approval phases is the simplest technique of guaranteeing the integrity of Financial institution transactions. OCCO performs a key function in these protecting efforts, and in addition helps to observe integrity dangers in tasks post-investment.

OCCO can also be chargeable for investigating allegations of fraud, corruption and misconduct in EBRD-financed tasks. Anybody, each inside or outdoors the Financial institution, who suspects fraud or corruption ought to submit a written report back to the Chief Compliance Officer by e-mail to compliance@ebrd.com. All issues reported can be dealt with by OCCO for follow-up. All stories, together with nameless ones, can be reviewed. Studies will be made in any language of the Financial institution or of the Financial institution’s international locations of operation. The data supplied have to be made in good religion.

Entry to Info Coverage (AIP)

The AIP units out how the EBRD discloses info and consults with its stakeholders in order to advertise higher consciousness and understanding of its methods, insurance policies and operations following its entry into drive on 1 January 2020. Please go to the Entry to Info Coverage web page to search out out what info is accessible from the EBRD web site.

Particular requests for info will be made utilizing the EBRD Enquiries type.

Unbiased Venture Accountability Mechanism (IPAM)

If efforts to deal with environmental, social or public disclosure issues with the Shopper or the Financial institution are unsuccessful (e.g. by means of the Shopper’s Venture-level grievance mechanism or by means of direct engagement with Financial institution administration), people and organisations could search to deal with their issues by means of the EBRD’s Unbiased Venture Accountability Mechanism (IPAM).

IPAM independently evaluations Venture points which might be believed to have triggered (or to be more likely to trigger) hurt. The aim of the Mechanism is: to assist dialogue between Venture stakeholders to resolve environmental, social and public disclosure points; to find out whether or not the Financial institution has complied with its Environmental and Social Coverage or Venture-specific provisions of its Entry to Info Coverage; and the place relevant, to deal with any present non-compliance with these insurance policies, whereas stopping future non-compliance by the Financial institution.

Please go to the Unbiased Venture Accountability Mechanism webpage to search out out extra about IPAM and its mandate; the best way to submit a Request for evaluation; or contact IPAM  through e-mail ipam@ebrd.com to get steerage and extra info on IPAM and the best way to submit a request.