People
The project is expected to create over 500 long-term jobs, with more than 30 per cent for women.
| Company | PIDG |
| Sector | Multi-sector |
| Country | Mongolia |
| Total Project Cost | USD 41.5 million |
| PIDG Commitment |
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| Dates of PIDG involvement |
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The government and regulators in Mongolia have placed great emphasis on sustainable finance, with initiatives such as the National Sustainable Finance Roadmap (2028) and the Green Taxonomy, which set clear criteria for green investments. However, a substantial funding gap remains, with the country requiring an estimated USD 11.5 billion to meet its 2030 greenhouse gas reduction targets.
Despite policy support, the market’s limited funding availability, high interest rates and a lack of green finance products continue to constrain Mongolia’s green finance sector. Further support is needed to scale up Mongolia’s sustainable investment landscape and mobilise private sector participation.
PIDG, through GuarantCo, provided a five-year 100 per cent payment default guarantee of USD 41.5 million to support Trade and Development Bank JSC (TDB) in Mongolia. Through this transaction, PIDG is facilitating overseas investors in offering long-term finance for critical sustainable infrastructure in Mongolia.
This innovative guarantee solution enables TDB to access a sustainability loan from the Tokyo branch of Korea Development Bank. The proceeds of this loan will be on-lent to eligible green and social projects aligned to TDB’s sustainability framework, which is verified by Moody’s ESG Solutions. The target on-lending sectors include renewable energy, green buildings, manufacturing, agriculture, recycling and clean transportation.
The project is expected to create over 500 long-term jobs, with more than 30 per cent for women.
TDB is accredited by the Green Climate Fund and loans are expected to support businesses and projects that are either reducing GHG emissions and/or contributing to climate change adaptation.
