FinDev Canada Lends US$50 Million to Golomt Bank for MSMEs, Climate and Nature

FinDev Canada, Canada’s bilateral development finance institution, has signed a US$50 million loan with Golomt Bank JSC (MSE: GLMT), Mongolia’s second largest commercial bank. The facility marks the first transaction between the two institutions and FinDev Canada’s first-ever financing with a portion earmarked for nature-related activities.

Deal Terms

70% of the loan will go to micro, small and medium-sized enterprises (MSMEs), including women-owned and women-led businesses, with the remaining 30% allocated to climate and nature finance. The transaction meets the 2X Challenge criteria for gender-lens investing, and the climate portion follows the Common Principles for Climate Mitigation Finance Tracking and IFC Blue Finance Guidelines.

Why It Matters

Long-term funding for the real economy. MSMEs account for roughly 70% of employment in Mongolia but remain constrained by limited access to long-tenor financing. DFI facilities like this give banks stable, longer-dated funding that domestic deposits alone cannot easily provide.

Building a green loan book. Golomt targets climate-related loans reaching 10% of its total portfolio by 2030, with funds directed to energy-efficient construction and water efficiency and pollution reduction projects. Given Mongolia’s high emissions intensity and its pledge to cut emissions by more than 30% by 2035, banks with a credible green lending pipeline are well placed to attract further climate capital.

Diversifying Golomt’s funding base. The deal follows Golomt’s long-term funding partnership with Triple Jump earlier this year and adds a new G7 development lender to its investor base, strengthening its position ahead of further international funding.

Part of a broader trend. Mongolian financial institutions are drawing growing interest from international lenders, with leading NBFIs such as InvesCore and LendMN raising close to US$100 million combined from foreign investors over the past year. Golomt’s facility extends that momentum to the banking sector, with a clear impact focus.

What to Watch

Key indicators will be the pace of disbursement to MSMEs and women-led businesses, growth in Golomt’s climate loan share toward its 2030 target, and whether a first transaction with FinDev Canada leads to follow-on facilities.