MonSEFF |-Mongolian Sustainable Energy Financing Facility | favourable terms loans | reduce energy consumption

MonSEFF | green loans for solar panels | solar finance options | FAQ

FAQ

What is MonSEFF?

MonSEFF stands for Mongolian Sustainable Energy Financing Facility.  It is a credit line developed by the European Bank for Reconstruction and Development (EBRD) to enable the Partner Banks in Mongolia to finance on favourable terms loans to businesses seeking to invest in equipment or processes that would significantly reduce their energy consumption. A key feature of MonSEFF loans is that they come with free international and national expertise provided through the EBRD’s Special Shareholder Fund. For more information check out About MonSEFF.

Is applying for a MonSEFF loan difficult?

No, on the contrary it is very simple and fast!  The loan application procedure itself is straightforward and a free-of-charge assistance is provided. Applicants must satisfy the local Partner Bank’s usual financial viability requirements.  Although MonSEFF loans do involve technical and financial evaluation, once the Partner Bank has agreed in principle to finance your project idea, the MonSEFF team who are financed by the EBRD’s Special Shareholder Fund carries out most of this work.

How can I apply for a MonSEFF loan?

Simply contact one of the Partner Banks or the MonSEFF team directly.

The procedure is indicated in the Loan Application Procedure section of this website.  Should you have any additional questions, please do not hesitate to contact the partner bank or MonSEFF team

What service does the MonSEFF team provide for borrowers?

The MonSEFF team will:

  • Independently evaluate your project from technical and economic perspective and prepare a report to support your loan application.
  • If you have not identified an energy saving project, the MonSEFF team will provide free technical assistance services to your factory or building to help you identify potential energy efficiency opportunities.

Are the services of MonSEFF free?

Yes, absolutely free-of-charge. The services provided by the MonSEFF team are funded through the EBRD’s Special Shareholder Fund.

What currency is used? MNT, USD or EUR?

Loans are available in MNT. The exception to this is when the client income is solely in USD.

What is the maximum amount for a MonSEFF loan?

The maximum MonSEFF loan size is USD 2.5 million for a single project. However, the project size may be larger provided the remaining funding comes from other sources.

What are the MonSEFF terms and conditions?

The MonSEFF loan terms and conditions (interest rates, maturity, grace period and collateral) are determined between the Partner Bank and the Borrower.

Can MonSEFF finance projects in new buildings?

No, MonSEFF is not available to finance new buildings unless these will look to achieve energy savings well above the standard for the country.  For more information about this, please talk to our experts.

Which projects cannot be financed by MonSEFF?

MonSEFF is available only for investments that result in energy savings of at least 15% or which replace the use of fossil fuels through renewables. They must also achieve a favourable internal return on investment, however some specific types of projects are excluded.  For more information on the financial, technical and project requirements check out our Eligibility Requirements. The EBRD also has a number of restraints regarding the types of companies and business activities which can be financed. For more details on these, check out the EBRD list of excluded sectors.

Are majority state owned companies eligible under MonSEFF?

No, MonSEFF loans are only available to companies that are majority owned by a private facility registered in Mongolia.

Are investments in new production facilities eligible under MonSEFF?

For projects where old equipment is not being replaced, the investment may be eligible provided the MonSEFF team can verify that the new technology is more energy efficient than the Common Market Practice (CMP) for this type of investment in Mongolia. For more information about this, please talk to our experts.

My company is a supplier of energy efficient equipment. Can we get a MonSEFF loan?

MonSEFF is targeted at the end user and currently does not provide loans to suppliers of energy efficient equipment. However, suppliers wishing to invest in equipment or processes that would significantly reduce their energy consumption are welcome to apply for a MonSEFF loan.

What types of projects are eligible for financing under the MonSEFF Programme?

All projects must result in investments that reduce energy consumption by a minimum of 15% or replace current fossil fuel consumption through renewable energy. However, such investments may result in a wide range of additional benefits such as increased productivity, reliability or improved product standards.

Which banks are participating in MonSEFF?

Currently MonSEFF is available through XacBank and KhanBank.

We are not clients of the listed MonSEFF partner banks. How do we get a MonSEFF loan?

To apply for a loan, contact  the Partner Bank or the MonSEFF team directly.