Trade and Development Bank of Mongolia (TDBM) has successfully made USD 15 million long-term financing agreement with International Investment Bank (IIB) within the framework of TDBM’s sustainable financing program.
Under the agreement between TDB and IIB, by supporting businesses implementing environmentally friendly and gender equality projects and programs aimed to reduce greenhouse gas emissions, mitigate/ adapt to climate change, the funding aims to facilitate Mongolia's sustainable development and to make significant contribution to the country's economic recovery.
Apart from having a valuable impact on fulfilling the UN’s Sustainable Development Goals in Mongolia, TDBM's sustainable finance program is also in line with the national “Green Taxonomy” developed by the Mongolian Sustainable Finance Association in 2019, which gives a unified definition of green loan and clearly classifies activities that meet requirements as well as green loan measurement and evaluation.
TDBM’s last thirty-years motto was “Together towards Prosperity”, as it had redefined its long-term strategy and future direction to become a green bank prioritizing the enhancement of sustainable development in the country by declaring its new motto as “Together towards Sustainability”. Within this context, our new long-term strategy reflects the UN’s SDGs and aims to particularly emphasize the following goals:
On behalf of International Investment Bank, Georgy Potapov, IIB Deputy Chairperson of the Management Board in charge of Lending and Investment said “This loan is a prime example of a transaction aimed at sustainable development of our member state. We are constantly striving to increase the volume of such projects in our portfolio. [In this regard] partnering with TDBM, whose mission is very much in line with ours, we long for a maximum impact from our financing in the local market.”.
While from the side of Trade and Development Bank of Mongolia, regarding the deal executed with IIB, Mr. Randolph S. Koppa, Executive Vice Chairman of TDBM, noted “We are truly delighted to collaborate with our trusted partner – IIB – on the implementation of both of our Women Entrepreneur Support Program and Green Loan Program, which will be directed to supporting women-led and -owned SMEs, and green businesses in Mongolia. This is a major step forward towards sustainable development and inclusive growth of the country, and part of our long-term strategy to become the leading green bank in Mongolia.”.
IIB was established in 1970 as an international organization based on the Inter-governmental Agreement establed between the governments of its member countries. It specializes in promoting the economic development and cooperation of its member states, consisting of the Republic of Bulgaria, the Republic of Cuba, the Czech Republic, Hungary, Mongolia, Romania, the Russian Federation, the Slovak Republic and the Socialist Republic of Vietnam. Since the establishment of correspondent relations between IIB and TDB in 2005, the two banks have been expanding mutual cooperation in such fields as securities, trade finance and sustainable finance in Mongolia.
Mongolia's leading commercial bank – TDBM – currently working as an Accredited Entity of the Green Climate Fund, has renewed its motto "Together towards Sustainability" stating that it will provide USD 2 billion in sustainable financing by 2030 and will become a neutral carbon institution by 2050. As for now, TDBM provides more than 150 financial services to customers through its online bank platform and more than 90 branches and settlement centers.
Trade and Development Bank
Together Towards Sustainability