To support access to financing for Mongolian SMEs, MicroVest announced an investment in Khan Bank, one of the largest commercial banks in Mongolia serving approximately 80% of Mongolian households with assets that account for one third of the country’s banking sector.
MicroVest’s $6 million investment will help support the growth of the Bank’s SME portfolio—which surpassed MNT one trillion (USD ~340 million) for the first time in 2021—and spur small business development to help alleviate poverty and create jobs in the country.
Established in 1991, Khan Bank offers retail and business banking services, including loans and business credit lines, insurance, and deposits for individuals, SMEs, and corporations in rural and urban areas of Mongolia. The company also offers Green Loan Products to finance environmentally-friendly businesses.
Access to finance, especially for SMEs, remains a challenge in Mongolia and is often cited as a key constraint to SMEs’ development in the country. SMEs account for about 98% of total registered business entities and employ about half of Mongolia’s total workforce (World Bank).
This is MicroVest’s 10th investment cycle with the company.