AKIPRESS.COM - The Asian Development Bank (ADB) and Mongolia's Golomt Bank Joint Stock Company have signed a $64 million loan agreement to support sustainable finance and expand lending to micro, small, and medium-sized enterprises (MSMEs), including women-owned businesses in Mongolia, the ADB press service reported.

The financing includes $60 million from ADB's ordinary capital resources and $4 million in concessional resources from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).

"This project underscores ADB's commitment to advancing sustainable growth and financial inclusion in Mongolia. By partnering with Golomt Bank, we aim to make financial services more accessible, improve productivity, increase income, and contribute to economic diversification," ADB Country Operations Head for Mongolia Chandra Mohan Arora said.

Mongolia faces severe environmental challenges, including frequent shocks caused by extreme weather events. Despite progress in establishing sustainable finance frameworks, substantial financing gaps persist in key sectors such as energy, agriculture, forestry, and water - areas critical for reducing emissions and strengthening resilience.

The project will finance investments across priority sectors and support energy efficiency in industry and housing, eco-tourism, and waste management, supporting Mongolia's transition to a more environmentally sustainable economy. By leveraging concessional financing, it will help Golomt Bank scale up operations in underdeveloped adaptation finance segments. The project will also expand access to finance for underserved populations, strengthen institutional capacity, and support programs for women entrepreneurs, including initiatives to protect women and girls in the workplace.

"With ADB and CANPA's support, Golomt Bank is pleased to introduce a pioneering and impact-driven financing solution alongside our existing green loan products. This will enable us to provide more affordable financing to households and businesses; help improve their operations while reducing environmental impacts; and contribute to a greener, more resilient future for Mongolia," said Golomt Bank Chief Executive Officer Odonbaatar Amarzaya.

Established in 2024, CANPA is a trust fund managed by ADB, supported by a commitment of Can$360 million from the government of Canada. The fund builds on the success of the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and its predecessor CFPS. CANPA supports private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting empowerment of women and girls.