Ulaanbaatar, Mongolia, June 5, 2025—The International Finance Corporation (IFC) and the Financial Regulatory Commission (FRC) of Mongolia have renewed their partnership to further advance sustainable finance in Mongolia by signing a new Memorandum of Understanding (MOU). This agreement also marks the launch of the second phase of the IFC Green Finance Market Development Project.
Mongolia has made significant progress in promoting green finance through various initiatives. In 2021, with support from the Government of Japan through its Comprehensive Trust Fund, IFC assisted the FRC in formulating Mongolia's Green Bond Regulation and Guideline documents. Since then, seven corporate green and social bond transactions have been successfully issued in both local and international markets, raising a total of $338 million. In 2022, IFC collaborated with other development partners to support FRC in launching the Environmental, Social, and Governance (ESG) and Sustainability Reporting Guidance for Mongolian companies, referencing leading international reporting frameworks, as well as the IFC Disclosure and Transparency Toolkit. In 2023, FRC joined the IFC-supported Sustainable Banking and Finance Network.
Under the MOU, the two parties will focus on developing regulations for innovative thematic financial instruments, including blue bonds, sustainability-linked bonds, and sustainable bonds. They will also work to align Mongolia’s ESG reporting framework with the International Financial Reporting Standards’ Sustainability Standards 1 and 2.
“This initiative aims to support more Mongolian issuers in tapping into climate-themed finance beyond green bonds, diversifying their funding sources, and attracting additional capital for key projects,” said Jambaajamts Tundev, Chairman of the Financial Regulatory Commission. “By collaborating with IFC, we can help build a more resilient and environmentally sustainable financial sector that aligns with international standards. This will contribute to the overall sustainability of our economy.”
Matthieu Le Blan, IFC’s Resident Representative for Mongolia, said: “Mongolia’s sustainable development plans present a significant opportunity to invest in infrastructure, farming, and forestry—driving job creation, innovation, and inclusive growth. These investments will help generate diverse employment, from construction and maintenance to services and clean tech startups, while fostering entrepreneurship and new industries. By leveraging our expertise, we are committed to creating an enabling environment that mobilizes more private sector solutions to help turn this vision into reality.”
Over the past decade, IFC has been a key supporter of Mongolia's sustainable finance development. As part of the initial phase of the IFC Green Finance Market Development initiative, IFC conducted a comprehensive climate risk exposure assessment for the Mongolian banking sector. In 2023 and 2024, IFC invested in Mongolia’s first green bond and social bond, respectively, helping to catalyze the country’s sustainable bond market.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About FRC
The Financial Regulatory Commission is an independent authority under the Parliament of Mongolia, mandated to regulate and supervise the non-bank financial sector. The FRC oversee a wide range of entities, including non-bank financial institutions, insurance companies and intermediaries, securities firms, savings and credit cooperatives, real estate agents, dealers in precious metals and stones, virtual asset service providers, and money lending service providers. In fulfilling its mandate, the Commission is responsible for safeguarding the interests of individual clients in the financial market— such as securities holders, domestic and foreign investors, and insurance policyholders— by preventing financial misconduct and ensuring compliance with applicable laws and regulations.
For more information, visit www.frc.mn.
Contacts
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FRC
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