FP028
MSME Business Loan Program for GHG Emission Reduction
MSME Business Loan Program for GHG Emission Reduction
Supporting Mongolian enterprises embrace energy efficiency and renewable energy.
Ninety percent of Mongolian businesses are run by Micro, Small and Medium-Sized Enterprises (MSMEs). The majority of these enterprises use outdated and inefficient equipment, processes and buildings - resulting in relatively large emissions of greenhouse gases. One of the main barriers to low-carbon innovation is financial. The lack of accessible commercial finance by local banks impedes the ability of Mongolian enterprises to invest in energy efficiency and renewable energy.
This programme will provide XacBank, one of Mongolia’s leading banks, with an enhanced ability to support loans to Mongolian enterprises investing in energy efficiency and renewable energy projects. GCF’s USD 20 million contribution will be blended with other financial sources to fund low-carbon projects. This will help Mongolian enterprises adopt enduring, low-carbon business models - and help alleviate the current prevalence of high financing costs and relatively short-term loan periods.
In accordance with GCF’s gender focus, at least half of the financial support will go towards women-led MSMEs.
The project has an estimated lifespan of 5 years.
Project timeline
Pipeline
23 Aug 2016 - 115 days
Concept note received
23 Aug 2016
Funding proposal received
03 Nov 2016
Legal opinion on AE's Internal Approval
23 Nov 2016
Cleared by iTAP
30 Nov 2016
Approved
15 Dec 2016 - 126 days
Approved by GCF Board
15 Dec 2016
FAA executed
07 Apr 2017
Under implementation
19 Apr 2017 - 2,775 days so far
FAA effective
19 Apr 2017
Disbursement - USD 500,000
01 May 2017
Disbursement - USD 19,500,000
23 Jun 2017
Annual Performance Report
23 Feb 2018
Annual Performance Report
28 Feb 2019
To be completed
09 Jun 2025 - 200 days to go
-
Financing
- Private sector
- Public sector
-
Size
- Micro
- Small
- Medium
- Large
GCF financing100% disbursed
| Instrument | Amount |
|---|---|
| Loan | USD 19,500,000 |
| Grant | USD 500,000 |
| Total GCF Financing |
|---|
| USD 20,000,000 |
Co-financing
| Co-financer | Instrument | Amount |
|---|---|---|
| Co-Financing | Loan | USD 20,000,000 |
| Co-Financing | Loan | USD 15,000,000 |
| Co-Financing | Loan | USD 5,000,000 |
| Total Co-Financing |
|---|
| USD 40,000,000 |
GCF Contacts
General media inquiries
GCF CommunicationsSend e-mail
Request for information
GCF Information DisclosureRequest information about this project
Project complaints and grievances
GCF Independent Redress Mechanism (IRM)Phone +82 32 458 6186 (KST)
File a complaint
Integrity issues
GCF Independent Integrity Unity (IIU)Phone +82 32 458 6714 (KST)
Send e-mail
Entity
XacBank JSC (Mongolia)
Director, Eco Banking Department
XacBank Headquarters Building, Post Branch 20A, P.O. Box 72, Ulaanbaatar, Mongolia
Project Development Officer
XacBank Headquarters Building, Post Branch 20A, P.O. Box 72, Ulaanbaatar, Mongolia
More contacts
National Designated Authority
Ministry of Environment and Tourism
Special Envoy on Climate Change of Mongolia, Ministry of Environment and Climate Change
Ministry of Environment and Climate Change Artsatiin am 624 Khan - Uul District 23rd khoroo, Ulaanbaatar, Mongolia
Senior Analyst, International Cooperation Department, Ministry of Environment and Climate Change
