FinDev Canada, Canada’s bilateral Development Finance Institution (DFI), has signed a USD 50 million loan to Khan Bank, marking its first-ever investment in Mongolia. The financing forms part of a larger USD 250 million syndicated facility led by FMO, the Dutch entrepreneurial development bank, underscoring strong multilateral support for Mongolia’s banking sector.

The transaction represents an important milestone for Mongolia’s financial system, signaling increasing international confidence in the country’s commercial banks and their role in advancing sustainable and inclusive growth.

The proceeds of the facility will be allocated across three priority areas central to Mongolia’s development agenda. Thirty percent of the funding will support climate mitigation and adaptation financing, addressing Mongolia’s high vulnerability to climate change. Another 30% will be directed toward women-owned and women-led micro, small, and medium-sized enterprises (MSMEs), strengthening women’s entrepreneurship and economic participation. The remaining portion will finance youth-led businesses and agri-SMEs, expanding access to long-term capital for underserved segments nationwide.

For Khan Bank, the facility enhances its capacity to scale green finance and inclusive lending while further diversifying its international funding base. For the broader market, FinDev Canada’s entry—alongside FMO’s leadership of the syndicate—highlights the growing role of development finance institutions in strengthening Mongolia’s financial intermediation and ESG-linked lending capabilities.

More broadly, the transaction may serve as a positive signal for other DFIs and impact-oriented investors evaluating opportunities in Mongolia, particularly in climate finance, MSME development, and inclusive banking.