Delphos, the leading DFI-focused financial advisory firm, advised Bogd Bank, a Mongolian commercial bank, in securing a commitment for USD 15 million in senior debt financing from the U.S. International Development Finance Corporation (“DFC”). Bogd Bank will use the facility to expand its lending to small and medium enterprises (“SMEs”) in Mongolia with a particular focus on women-owned businesses and businesses in the burgeoning green sector. This landmark financing will help Bogd Bank to grow its loan portfolio in impactful ways and amplify its ability to reach customers in rural areas through its expanding array of digital products and services. The USDFC loan is being provided in the context of greater financial liberalization for the Mongolian banking sector, including Bogd Bank’s recent IPO.
“Bogd bank is thrilled to establish this partnership with DFC. It’s an important milestone for our bank to showcase our commitment to promoting inclusive and sustainable business growth in the SME and green financing sectors in Mongolia while fostering job creation and overall development of the economy through providing long-term financing solutions. We hope to continue our aligned cooperation with DFC in the coming years.” said Bogd Bank’s CEO, Saruul Ganbaatar.
Having worked with DFC many times before, Delphos is excited to connect another one of its clients with impactful financing.
“We are delighted to be assisting Bogd Bank, one of the youngest and most dynamically growing banks in Mongolia, in this landmark financing. SMEs are the backbone of the Mongolian economy. The DFC facility will enable Bogd Bank to expand its lending in the most impactful sectors, fostering sustainable economic growth.”, said Delphos’ President, Andrew Brown.
The financing is expected to have a highly developmental effect on the Mongolian economy expanding access to credit for SMEs in highly impactful sectors and fostering financial inclusion through reaching underbanked remote communities via innovative digital banking offerings. The transaction is directly contributing to several UN SDGs, including: fostering gender equality (SDG5), reducing inequality (SDG10), climate action (SDG13), and decent work and economic growth (SDG8).
