MFP-SME KhanBank OSB

pending

The project involves (1)  up to US$130 million investment in Khan Bank JSC (“Khan Bank” or “the Bank”)  for IFC’s own account, consisting of (i) a 5-year USD-denominated senior loan of up to US$80 million; (ii) a 3-year USD-denominated senior loan, of up to US$20 million; and (iii) a Mongolian Tugrik (MNT)-linked loan of up to US$30 million equivalent, with a tenor of up to 5 years with the option to reset the rate at year 3, and (2) a 3-year USD-denominated senior syndicated loan of up to US$150 million to the Bank (the “Project”).The Project is intended to support the expansion of the Bank’s lending program for micro, small and medium enterprises (MSMEs) in Mongolia with carve-outs to women-owned/led MSMEs, rural MSMEs, MSMEs operated by young entrepreneurs, and agricultural MSMEs. In addition, IFC will provide a package of cross-currency swaps for the borrower to hedge up to US$300 million in FX exposure stemming from the USD loans.