MicroVest, a debt-focused asset manager owned by US-based DAI Global, recently agreed to lend USD 6 million to Khan Bank, which serves individuals and companies of all sizes in Mongolia. The goal of the loan is to boost Khan Bank’s financing of small and medium-sized enterprises (SMEs) in order to stimulate job creation and reduce poverty.
Established in 1991, Khan Bank provides microfinance and traditional banking services to 2.5 million clients via online channels and 547 branches. Its service menu includes deposits, international transfers, escrow services, payment cards and various types of loans. The bank is privately owned by Sawada Holdings of Japan and Tavan Bogt Trade of Mongolia. As of March 2021, Khan Bank reported total assets of MNT 12.3 trillion (USD 4.3 billion), customer savings of MNT 7.58 trillion (USD 2.66 billion) and loans to customers totaling MNT 5.32 trillion (USD 1.87 billion). During 2021, the bank’s SME portfolio reached MNT 1 trillion (USD 340 million).
MicroVest was founded in 2003 and specializes in channeling investments to funders of microenterprises and SMEs in low- and middle-income countries. The firm’s portfolio was valued at USD 519 million as of 2021.
Employee-owned DAI is active in 100 countries in areas such as “economic development, sustainable business, climate change and the environment, governance, gender, and health.” The firm employed approximately 5,400 people as of 2020.
By Hasnat Aslam, Research Associate
Sources and Additional Resources
MicroVest press release
https://microvestfund.com/microvest-supports-sme-development-in-mongolia-with-investment-in-khan-bank/
Khan Bank homepage
https://www.khanbank.com/
MicroVest homepage
https://microvestfund.com/
DAI homepage
https://www.dai.com/
Previous MicroCapital story on MicroVest
/microcapital-brief-microvest-investing-2-5m-in-rentek-of-colombia-to-help-msmes-recover-from-covid-19-downturn/
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