The Global Climate Partnership Fund (GCPF), managed by responsAbility Investments AG, aims to invest USD 15 million in Golomt Bank, a leading financial institution in Mongolia committed to innovative and inclusive financial services. This investment supports Golomt Bank’s sustainable development strategy, particularly its goals to expand the green loan portfolio, enhance sustainable and green investments, and advance the understanding of sustainable financing among its employees and customers.
Golomt Bank, with its strong focus on supporting corporates and SMEs, plays a pivotal role in driving economic growth and fostering entrepreneurship in Mongolia. This strategic partnership with GCPF is aimed at funding a range of renewable energy and energy efficiency initiatives, marking a significant step towards achieving environmental sustainability and supporting Mongolia’s growing need for clean and efficient energy solutions.
Enhancing E&S risk management and climate financing capacity building with GCPF’s Assistance
In addition to financial support, GCPF will provide Technical Assistance to Golomt Bank, sharing international methods and expertise in environmental and social risk assessment. The bank’s relationship managers and credit officers will also be provided trainings to strengthen their capacities to grow the bank’s green portfolio. This cooperation is aimed at enhancing the bank’s capabilities in E&S risk management and climate financing, thus solidifying its commitment to sustainable practices and responsible banking.
Mongolia’s Transformation Towards Sustainability and Renewable Energy
Mongolia is undergoing a significant economic transformation. A landlocked country in East Asia, known for its diverse landscapes from the Gobi Desert to the Altai Mountains, Mongolia is diversifying beyond traditional sectors like nomadic herding and mining. The capital, Ulaanbaatar, stands as a hub of cultural and economic activity. The nation’s focus on sustainable development and renewable energy is a testament to its commitment to a future-oriented, environmentally conscious approach to economic growth.
“This partnership with Golomt Bank is a pivotal step in our objective to support sustainable energy projects. It reflects our commitment to environmental stewardship and economic development in emerging markets,” said Mr. David Diaz Formidoni, Head of FI Investments, Climate Finance at responsAbility Investments AG.
“This significant investment from GCPF not only reinforces our commitment to green and sustainable projects but also positions Golomt Bank at the forefront of Mongolia’s collective action to respond to climate change. We are excited about this partnership and the opportunities it opens for our community and the environment,” said Norihiko Kato, CEO of Golomt Bank.
About Golomt Bank
Golomt Bank is committed to providing innovative and inclusive financial services to its diverse customer base. With a wide range of banking solutions and a strong focus on supporting Corporates and SMEs, Golomt Bank plays a pivotal role in driving economic growth and fostering entrepreneurship in Mongolia.
About the Global Climate Partnership Fund (GCPF)
The Global Climate Partnership Fund is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. The Fund is an innovative public-private partnership dedicated to mitigating climate change through a reduction of greenhouse gas emissions in emerging and developing markets. It focuses on financing energy efficiency and renewable energy projects, through local financial institutions or directly. Only projects that generate significant energy savings and pledge to reduce projected greenhouse gas emissions by at least 20% are eligible for funding.
GCPF was established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership. Junior catalytic capital is provided by BMU, the department for Business, Energy and Industrial Strategy (BEIS) of the UK, Denmark’s development cooperation (Danida). Other private and public investors include ASN Bank, Ärzteversorgung Westfalen-Lippe, FMO, OeEB, Sparkasse Bremen, the European Investment Bank (EIB) and Heilsarmee.
About responsAbility Investments AG
responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.
Since its inception in 2003, responsAbility has deployed over USD 14 billion in impact investments. With over 270 employees collaborating across eight offices, as of 1 October 2023 the company manages USD 4.7 billion in assets across approximately 270 portfolio companies in 72 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.