ADB invests 12.5 million USD in Mongolia's green bonds

MANILA, Oct. 15 (Xinhua) -- The Asian Development Bank (ADB) said Tuesday that it has invested 12.5 million U.S. dollars in a green bond issued by Khan Bank JSC under the first green thematic bond program on the Mongolian Stock Exchange.

The ADB said the proceeds from the three-year bonds will be used to provide green sub-loans, with a strong focus on supporting small and medium-sized enterprises and microenterprises, particularly those owned or managed by women.

"This landmark green bond offering deepens Mongolia's green finance market while enabling inclusive investments to support small businesses and improve the livelihoods of smallholder farmers," said ADB's Director General for the Private Sector Operations Department, Suzanne Gaboury.

In 2019, the Financial Stability Council of Mongolia approved a green taxonomy to help identify and classify investments based on their environmental sustainability. The banking sector has committed to achieving a green loan target of 10 percent by 2030.