The Big Picture

Mongolia raised $2.6 billion in foreign capital in 2025 across 40 transactions involving 19 companies. The overwhelming majority of this capital was not conventional investment chasing returns. It was impact finance — development loans, blended facilities, gender-lens credit, green bonds, and youth entrepreneurship funds, deployed by a coordinated network of multilateral institutions and specialized private credit funds with explicit social and environmental mandates.

Of the $2.6 billion raised, an estimated $1.83 billion, or 72% of the total, was earmarked for inclusive and sustainable SME lending or green projects. That is an exceptional ratio by any frontier-market standard. Mongolia has not merely attracted impact capital; it has built an economy where impact capital is the primary mechanism of international financial integration.

Who Is Funding Mongolia's Impact Story

The investor base spans three tiers. Multilateral heavyweights — EBRD, FMO, ADB, and IFC — anchor the market by volume and deal count, often leading syndications that draw in smaller co-lenders. Bilateral DFIs from Europe, North America, and Asia fill the mid-layer. And a growing roster of specialist impact funds co-invest alongside them.

The four multilaterals alone deployed $1.153 billion across 15 deals — the single largest block of capital in Mongolia's 2025 foreign investment story, and a figure that reflects sustained institutional conviction rather than opportunistic positioning.

The bilateral layer is wide. FinDev Canada, DFC, KDB, Proparco, and Finnfund contributed facilities ranging from $10M to $120M across Khan Bank, TDB, Golomt Bank, and XacBank — each carrying climate, gender, or SME mandates consistent with their home institution's impact frameworks.

The Impact & EM Private Credit Funds: A New Wave of Investors

Alongside the DFIs, a sophisticated layer of specialist private credit funds has entered Mongolia, bringing market-rate or near-market-rate capital with ESG mandates. These are not charities; they are institutional funds with return expectations, but their investment criteria systematically favor gender, green, and inclusion outcomes.

BlueOrchard (a Schroders company, specializing in microfinance and impact lending) participated in both the XacBank FMO syndicate ($150M) and contributed a direct $35M senior loan to XacBank for SME lending. BlueOrchard has deep roots in Mongolian microfinance, having financed Mongolian institutions for over a decade.

Symbiotics participated in multiple Mongolia transactions: a loan to XacBank ($5M SME), a co-loan to Golomt Bank (as part of the $50M Proparco facility), and a loan to LendMN (as part of its $4M Developing World Markets deal). Symbiotics specializes in sustainable debt for financial institutions in emerging and frontier markets.

ILX Fund co-participated in both the Khan Bank ($200M FMO syndicate) and XacBank ($147M EBRD package), demonstrating its preference for DFI-anchored transactions.

Enabling Qapital provided a $16M senior loan to InvesCore for SME lending, one of the larger single-investor commitments to a Mongolian NBFI.

Lendable provided a $20M senior loan to LendMN for women and MSME lending, representing Lendable's first investment in Mongolia, marking a significant frontier market entry.

Triple Jump (a Dutch impact fund manager) appeared in three separate deals: $5M to InvesCore, $5M to Bogd Bank, and participation in Golomt Bank's Proparco facility.

Incofin (Belgian impact investor) and Innpact co-invested $2M in BID NBFI for gender lending, and Incofin co-lent $19M to XacBank alongside Symbiotics.

Crowd Credit (Japan) provided $5M to Ard Credit to support digital lending via the Ard App, an unusual Japan–Mongolia fintech impact connection.

Developing World Markets invested $4M in LendMN for impact and MSME lending.

Helicap (Singapore) provided a $25M loan facility to ICFG (Pocket) for scaling digital lending. Helicap's mandate focuses on financial inclusion through technology-enabled lenders in Asia.

2026: What's Already Happening + New Wave of Deals

2026 is already shaping up as another breakout year. The following transactions have been completed or announced as of the time of writing.

State Bank of Mongolia — $100M Green Bond: State Bank of Mongolia issued a $100M senior notes (bond) specifically to finance green projects and programs. Following the bank's $200M 2025 issuance, this represents a continued and deepening commitment to sustainable bond markets — and confirms State Bank as a repeat issuer in the international green finance space.

Golomt Bank — New $300M 3-Year Senior Unsecured Notes + Concurrent Tender Offer (2026): Golomt Bank has returned to the international bond market in 2026 with a new $300M three-year USD-denominated Senior Unsecured Notes, executed simultaneously with a concurrent tender offer for its existing $400M May-2027 notes (the $300M debut issued May 2024 plus $100M tap in December 2024). The combined transaction is the defining capital markets moment of 2026 for Mongolia.

The numbers tell the story:

• Order book: $1.8 billion+ — 6.1x oversubscribed
• 115 accounts participated: asset management funds, hedge funds, banks, and broker-dealers across the USA, Asia, and Europe
• Concurrent tender offer on existing $400M May-2027 notes, a liability management structure typically reserved for investment-grade markets

Invescore — $5M Senior Debt (January 27, 2026): Triodos Investment Management (Netherlands) extended a $5M senior debt facility to InvesCore in January 2026, supporting SME lending and digital credit expansion. Triodos is one of the world's most recognized pure-play impact banks, making its Mongolia entry significant. This deal builds on InvesCore's $41M raised in 2025 and deepens its international DFI and impact investor relationships.

LendMN — New $20M Senior Secured Debt Facility (2026, Delphos-advised)

In 2026, Delphos advised LendMN, a leading mobile-first digital lender, on raising an up to $20 million senior secured debt facility. This funding supports fintech-led SME lending and enhances digital credit access for underserved communities. This deal extends LendMN's 2025 relationship with impact-oriented lenders and signals a growing appetite for Mongolia's digital lending infrastructure.

Netcapital Finance Corporation NBFI — $5M Debt Financing (March 16, 2026) Netcapital Finance Corporation secured a $5M debt financing facility from Japan's Bankers Crowd Credit Co., Ltd. to expand and diversify its lending services for Mongolian SMEs. This deepens the Japan-Mongolia microfinance corridor that also includes Crowd Credit's 2025 facility to Ard Credit, and signals growing Japanese retail and institutional interest in Mongolian NBFI paper. Following Netcapital's $3M EMF Microfinance Fund deal in 2025, this deal doubles the company's recorded international funding.

What the Numbers Don’t Show – The Gap Worth Closing

Mongolia’s large banks have cracked the code on international impact finance. But, behind Mongolia's $2.6 billion deals in 2025 is a distribution problem. The capital that arrived in 2025, from EBRD, FMO, ADB, IFC, and a constellation of bilateral DFIs and impact funds, went almost entirely to the four largest banks. That is understandable: large banks offer the balance sheet, the frameworks, and the track record that institutional lenders need to deploy at scale. But it means that smaller commercial banks and mid-sized NBFIs, institutions that often lend deeper into underserved communities than their larger peers, are still waiting at the door.

Changing that requires more than goodwill. It requires visibility, structured dialogue, and the kind of institutional familiarity that only develops over time and in person. Capital Markets Mongolia exists, in part, to build exactly that bridge. The Mongolia Investment Forum in London will make impact investment a central theme, not as a side conversation, but as the main event, with the explicit goal of connecting the global impact finance community to the Mongolian institutions that need it most but have so far been hardest to reach. The large banks have shown what is possible. The work now is to extend that possibility to the rest of the market.