XacBank US$ 20 million Funding Proposal Unanimously Approved by Green Climate Fund
After receiving Green Climate Fund (GCF) accreditation in October 14, 2016, XacBank submitted its first funding proposal for consideration at the GCF’s December 2016 Board meeting in Apia, Samoa. The funding proposal was unanimously and enthusiastically approved by the Board on December 15th, 2016. XacBank is to receive US$ 20.0 million in concessionary loans from the GCF to promote both the use and production of energy efficiency and renewable energy products in the domestic market.
The approved program for MSMEs, is an extension of XacBank’s existing Business Loan Program for GHG Emissions Reduction and it is aimed at the Mongolian MSME market and covers all parts of the energy efficiency and renewable energy market supply chain. The goal of the loan program is to incentivize the installation, production, trade and use of these products in Mongolia through low interest rates. In addition, this program extension has a particular emphasis on promoting women-led business’s access to climate finance, and 50% of the facility sub-projects will be women-led MSMEs. It is estimated that this program will reduce CO2 emissions by 1.2 million tons over eight years.
At this same board meeting, XacBank, represented by Mr. Amar Hanibal (President), and the GCF, represented by Mr Javier Manzanares (Interim Executive Director) signed the Accreditation Master Agreement (AMA), marking the completion of the accreditation process and making Mongolia the first commercial bank to sign this agreement with the GCF.
With this loan program, XacBank will be able to continue its support for Mongolian businesses seeking to become environmentally sustainable while also cutting energy costs and saving money. XacBank is committed to being the right bank for its clients and for the planet.
