The Asian Development Bank (ADB) and Golomt Bank have signed a $64 million loan agreement to expand sustainable finance and increase lending to micro, small, and medium-sized enterprises (MSMEs), including women-owned businesses, in Mongolia.

The financing package comprises $60 million from ADB’s ordinary capital resources and $4 million in concessional funding from the Canadian Climate and Nature Fund for the Private Sector in Asia.

The project aims to support sustainable growth and financial inclusion while addressing Mongolia’s financing gaps in sectors critical to climate resilience and emissions reduction, including energy, agriculture, forestry, and water.

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

According to ADB, Mongolia continues to face severe environmental challenges, including frequent shocks caused by extreme weather events.

Although the country has made progress in establishing sustainable finance frameworks, substantial financing gaps remain across priority sectors.

The project will finance investments supporting energy efficiency in industry and housing, eco-tourism, and waste management as Mongolia transitions toward a more environmentally sustainable economy.

By leveraging concessional financing, the initiative is also expected to help Golomt Bank expand operations in underdeveloped adaptation finance segments.

Beyond climate-related investments, the facility will broaden access to finance for underserved populations, strengthen institutional capacity, and support programs for women entrepreneurs, including initiatives designed 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,” said Odonbaatar Amarzaya.

He said the financing would enable the bank to provide more affordable funding to households and businesses, improve operations while reducing environmental impacts, and contribute to “a greener, more resilient future for Mongolia.”

Established in 2024, CANPA is an ADB-managed trust fund backed by a commitment of Can$360 million from the Government of Canada to support private-sector climate and nature-based projects across Asia and the Pacific while promoting the empowerment of women and girls.

Golomt Bank, Mongolia’s second-largest bank, operates 108 branches nationwide and held about 20% of the country’s green finance market at the end of 2025.

By Michael Wong

Published Date:2026-07-06