The Asian Infrastructure Investment Bank (AIIB) has signed a five-year senior unsecured green loan with Khan Bank JSC (Khan Bank) to expand access to long-term green financing in Mongolia. It marks AIIB’s first nonsovereign-backed financing and its first investment in a financial institution in the member.
AIIB acted as lead arranger and lent USD80 million. Korea Development Bank (KDB) lent an additional USD20 million as parallel lender, while B-loan participants from Asia committed a further combined USD30 million. The transaction mobilizes USD50 million in additional financing and features a dual-currency structure, allowing drawdowns in both US dollars and Mongolian Tugrik (MNT).
The financing will be channeled through Khan Bank, Mongolia’s largest commercial bank, to support eligible green investments in renewable energy, energy efficiency, green buildings, pollution prevention and control, water management and treatment, and clean transport. Leveraging Khan Bank’s extensive nationwide network and experience in sustainable finance, the partnership aims to broaden access to climate-aligned financing and strengthen Mongolia’s climate resilience.
“Green finance is a critical agenda item for the next decade, with the potential to tackle climate change and economic inequality while fostering prosperity for communities around the globe,” said Kim-See Lim, AIIB Chief Investment Officer 1. “We are delighted to announce AIIB’s first collaboration with Khan Bank, which has long been recognized as a pioneer in environmental sustainability and gender inclusion.”
“Mongolia is among the top 10 countries most vulnerable to climate change, making climate action a national priority,” said Munkhtuya Rentsenbat, Chief Executive Officer of Khan Bank. “With our country’s commitment to reducing greenhouse gas emissions by 30.3% by 2035, the banking and financial sector has a critical role to play in turning this ambition into tangible results. We are pleased to embark on this partnership with AIIB and KDB, combining our strengths and shared ambitions to advance Mongolia’s national climate goals and deliver meaningful, lasting impact.”
The investment supports AIIB’s thematic priorities of green infrastructure and private capital mobilization while deepening the Bank’s engagement with Mongolia’s private sector. It also contributes to Mongolia’s climate commitments under the Paris Agreement, as well as the country’s Vision 2050 Strategy and Green Development Policy.
More information about the project can be found here.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow”, with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About Khan Bank
Established in 1991, Khan Bank is Mongolia's largest commercial bank, serving around 84% of the country’s population. Khan Bank provides universal financial services spanning retail, corporate and small and medium-sized enterprise (SME) segments, supported by the country’s largest branch network and expanding digital channels. Listed on the Mongolian Stock Exchange since 2023, Khan Bank is rated B1 by Moody’s and B+ by Fitch.
