JCB, Bank of Mongolia and Trade and Development Bank of Mongolia Sign Master Acquiring License Agreement
16 May 2013, Tokyo and Ulan Bator: JCB International Co, Ltd. (“JCBI”), the international operations subsidiary of JCB, Bank of Mongolia (“BOM”), chair of the nationwide payment network, and Trade and Development Bank of Mongolia (“TDBM”), a major commercialbank in Mongolia, are pleased to announce the signing of a Master License agreement for merchant acquiring. The new agreement enables all merchants in Mongolia to accept JCB cards.
BOM, as the countrys central bank, started setting up a countrywide payment network in 2010 in order to cater for the rising demand for international and domestic payment card acceptance. TDBM had a partnership with JCBI since 1994 and offered to act as the gateway to the JCB network.
Kimihisa Imada, Deputy President of JCBI said, “I am very pleased to be able to strengthen our business in this country through the partnership with BOM and TDBM. We foresee that the card market in Mongolia will be growing even faster thanks to the country’s strong economic development. Together with BOM and TDBM, we are eager to aggressively expand our collaboration in this market.”
Batshugar Enkhbayar, Deputy Governor of BOM said, “As we are aware, the central bank’s role in the payment system is to promote its primary function of providing payment, clearing and settlement service; in this context, cashless payments are one of the important functions for the financial system and the economy as a whole. BOM started payment card clearing network in collaboration with major member banks in 2010. Since this historical event, both domestic and international card payment volume has been rising continuously. We believe that JCB card acceptance in the country will expand both economic and financial cooperation between Japan and Mongolia.”
Medree Balbar, Chief Executive Officer of TDBM said, “It is a great honor for me to have a partnership with JCBI and BOM. JCBI and TDBM have enjoyed a long standing relationship with each other from 1994. Over the last decades, our connections and JCB card transactions have been growing, significantly. Looking to the future, we will be able to achieve more and to be able to continue to develop even stronger relationships between the people of Mongolia and Japan through our broad cooperation.”
The new agreement between JCBI and the two Mongolian institutions will significantly improve the payment environment for JCB cardmembers visiting the country. With the card acceptance made wider through this deal, JCB is looking to start the card issuance with banks in Mongolia in the near future.
International and Mongolian Development Partners Launch Forum to Promote Sustainable Finance in Mongolia – May 13 -16, 2013
In The Hague
+976 11 312641
Ulaanbaatar, Mongolia, May 13, 2013 – Dutch Development Bank FMO, Trade and Development Bank of Mongolia (TDB), IFC, a member of the World Bank Group, Mongolia Bankers Association (MBA) and the Banking and Finance Academy (BFA) today launched a sustainable finance forum to promote green growth in Mongolia as the country develops.
The four-day Mongolian Sustainable Finance Forum 2013, which started today with a CEO roundtable exclusively for banking chief executives and the Bank of Mongolia, aims to raise awareness, foster cooperation and facilitate policy development and knowledge sharing in sustainable development.
For the first time, different stakeholders, including local bank executives, government officials, key industry representatives and international experts, are gathering to discuss ways for the banking sector to capitalize on new business opportunities while ensuring Mongolia’s sustainable development. The resource-rich country is one of the world’s fastest-growing economies, having expanded 12.3 percent in 2012, according to the World Bank.
“It is a pivotal time for Mongolia’s economic development,” said Ms. Sanjaasuren Oyun, Mongolia’s Minister of Nature, Environment and Green Development, at the CEO roundtable. “The banking sector can play an important role in ensuring that the country’s economic growth can create long-term values and benefit more local communities.”
In the same vein, Mr. Enkhbayar Batshugar, Deputy Governor of the Bank of Mongolia said, “We are delighted that the sustainable finance forum is being organized in Mongolia. We hope that, in the near future, internationally recognized sustainable financing practices and standards will be implemented throughout the Mongolian banking sector. The journey has started and we will be working together with the banks to promote and support sustainable financing and development.”
The Mongolian government has attached great importance to green growth and environmental responsibility. In 2013, the government established a new National Green Development Strategy and an action plan to outline ways to build a greener economy.
In his opening speech, Mr. Nanno Kleiterp, Chief Executive Officer of FMO and co-convener of the event, expressed his delight at the high-level support for sustainability. “I am excited to see various stakeholders and decision makers presenting here today to support sustainability in Mongolia. I strongly believe Mongolia has the potential to become a leader in this new area among frontier economies.”
An increasing number of developing countries have created sustainable-finance frameworks and incentives, such as China’s Green Credit Policy and Nigeria’s Sustainable Banking Principles, to support the adoption of environmental and social standards as well as to explore sustainable business models. International organizations such as IFC and FMO have been leading this transformation with local partners in emerging markets.
“IFC’s own portfolio has shown that good environmental and social performance directly correlates with long-term financial return,” said Mr. Hyun-Chan Cho, IFC’s Country Manager for China, Mongolia, and Korea. “We are helping banks and companies in emerging economies to become more competitive and manage their non-financial risks smartly by sharing our global knowledge and local resources.”
TDB, one of the top five Mongolian banks with a focus on raising awareness on sustainability issues across the industry, has been implementing an internal environmental and social risk management framework it recently developed. “Environmentally and socially sustainable banking protects our assets and presents business opportunities by opening up new financial products and markets,” said Mr. Medree Balbar, Chief Executive Officer of TDB. “We are committed to sharing international best banking practices with our peers and educating our clients in this regard.”
Mr. Bold Magvan, President of the Mongolian Bankers Association, said, “Developing sector expertise and creating a level-playing field will be a crucial element for sustainability to thrive in Mongolia. In addition to using existing platforms and networks, we will be working together with the Bank of Mongolia, the Ministry of Environment and Green Development, and our international and local partners to assist the banking sector in building relevant knowledge and capacity over the short, medium and long term.” This view was echoed by Ms. Nergui Sandagjav, Director of the Banking and Finance Academy.
Mongolia’s central bank and its Ministry of Environment and Green Development are both represented in the Sustainable Banking Network for Regulators. The network, led by IFC, is an informal group of bank regulators and banking associations to develop standards, policies and guidelines for environmental and social best practices in their countries’ banking sectors.
The President of Mongolia, His Excellency Mr. Tsakhiagiin Elbegdorj, is expected to give a keynote speech at an industry seminar on May 15. More than 200 professionals from different sectors of the economy are expected to attend.
FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks.
TDB, the oldest and the largest corporate bank in Mongolia, prides itself for its leading position as the universal banking service provider, offering full range of services delivered with dynamism and excellence in service and quality. TDB was the first to introduce modern banking technology, adopt IASB standards in financial reporting, become a member of SWIFT network, offer card and ATM services and commence gold exports into the foreign market. As the top international expertise derived from State bank of Mongolia origins, TDB is undoubtedly the international face of Mongolia with strong capabilities in corporate banking, international banking, treasury, retails and SME banking.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.
The Mongolian Bankers Association is an independent, non-profit, non-government organization established in 2000 by the banking and non-banking financial institutions in Mongolia. As of today, we are the voice for 19 member financial institutions including 14 commercial banks, 4 non-bank financial institutions and one foreign Bank Representative Office. The Vision of the MBA is to become a powerful professional organization representing the bankers and financial officers, to lead the banking and financial sector to ensure the sustainable development and equitable economic growth of Mongolia, and to contribute substantially to the development of the country as the regional financial center
The Banking and Finance Academy is a professional training institute of the banking and financial sector of Mongolia. It was established by several commercial banks of Mongolia with a goal to provide the most immediate and/or up-to-date training services for Mongolian banking and financial professionals and practitioners to enhance their professional knowledge and skills. The Academy is serving the growing need for professional financial education in the Mongolian banking and financial sector and the public.
Trade and Development Bank awarded excellent quality of foreign transaction bank
TDB, experienced banking service provider in the Mongolian foreign transaction market and a major player in the Mongolian financial market was awarded with “Excellent Quality of Straight Through Processing Award 2011” by the German CommerzbankAG.
TDB earned the award by its excellent quality in the delivery and processing of international transactions. The Bank processes its clients’ euro denominated payments and financial transactions through the CommerzbankAG Frankfurt with a quick and quality service.
Having established a strategic partnership with over 150 leading financial institutions all over the globe, TDB still retains its position as the only bank to serve its clients with the 14 foreign currency denominated payments and transactions.
Trade and Development Bank has joined to Mongolian Brand
One of the biggest international events, Mongolian Economic Forum is organized for both foreign and domestic delegations from various economic sectors in discussing and rating Mongolian economic development and further proposing solutions to contributing to the development of the economy.
The slogan of this year’s Mongolian Economics Forum was called “Mongolian Brand”. Mongolian cashmere won the “Mongolian brand” with a solid vote which indicates that cashmere production in Mongolia plays another key role in development of the economy. It clearly showed that mongolian labor market should not be only directed towards the mining sector but also the cashmere sector.
Throughout the forum, participants of the forum praised issuance of “Chinggiss Bond” in the international market in which the Trade and Development Bank played a substantial role in issuing the bond.
Trade and Development Bank highlighted the importance of the Mongolian Economics Forum and participated in the event as the “Platinum Sponsor”. In addition to sponsoring the event, TDB showed that its’ objectives are in alignment with the economic and financial development of Mongolia and that it strives to bring up the Mongolian financial market to the international standards.
We would like to inform you that “Erdenes” settlement center will work on extended hours from 11:00AM to 08:00 PM from Monday through Sunday. Visit our settlement center and find financial solutions tailored to your needs!
Location: West of "10000" shopping mall, L.Enebish Street, 3rd Microdistrict, 15th Khoroo, Bayangol District
Telephone No: 7011-4982
Trade and Development Bank has competed in the world and awarded ‘Best corporate bank Mongolia 2012’
The British “Global Banking & Finance Review” is an influential organization in the financial sector on the global stance for its excellent review of organizational operations which global business players and financial institutions analyze and implement in their operations.
At the 2012 “Global Banking & Finance Review” awards, Trade and Development Bank of Mongolia was awarded for the “Best Corporate Bank Mongolia 2012” from among best commercial banks in the world.
“Global banking and finance review awards” is an esteemed award among financial institution due to its global reach in equal competition, research, and equal service to the banks.
TDB & Bloomberg launches Bloomberg TV Mongolia
First international broadcast news organization to report from and on Mongolia
ULAN BATOR, October 8, 2012 - The Trade & Development Bank of Mongolia (TDB ), in partnership with Bloomberg Television, today announced the official launch of Bloomberg TV Mongolia. The launch of Bloomberg TV Mongolia signifies the introduction of the first international broadcast news organization in Mongolia, one of the fastest-growing stock markets and investing environments in Asia today.
Over the last year, Bloomberg has trained over 30 local journalists who are now working at BTV Mongolia, and built a state-of-the-art high definition television studio in the heart of downtown Ulaanbaatar. Bloomberg TV Mongolia will deliver international, market-moving business and financial news to the local community, and insightful coverage of Mongolia to the rest of the world, providing a unique edge for viewers.
“We are honored to be a part of this exciting launch, and to be able to offer our experience and expertise in broadcast journalism to an important region,” said Parry Ravindranathan, Head of Bloomberg Television for Asia-Pacific. “Our partnership with The Trade & Development Bank of Mongolia is part of our momentum in establishing strategic long-term partnerships in Asia which we believe will enhance market transparency in local markets.”
“With the economic growth of Mongolia, decision makers and business leaders here have an increasing need for market-moving, accurate and international business and financial news. Likewise, global audiences are becoming ever more intrigued by what is happening in Mongolia,” said Randolph Koppa, President of TDB. “Bloomberg TV Mongolia will be a valuable and indispensable education source for the business community. As Mongolia’s first bank, TDB has a long-term interest in educating the local population about important business and economic news.”
With Executive Producer Todd Baer at the helm, Bloomberg TV Mongolia launches on October 8 with its flagship evening newscast ‘Money Flow,’ followed by its prime-time interview program ‘Talk to Bloomberg TV Mongolia.’ The weekly program includes five hours of locally produced content, combined with simultaneous and taped translated Bloomberg content. Weekend programming schedule includes 12 hours of taped translated Bloomberg programs, supplemented by Bloomberg TV’s pan-Asian feed. Bloomberg TV Mongolia will be available on all of Mongolia’s major cable providers.
About Bloomberg Television
Bloomberg Television, an award-winning, multi-platform 24-hour business and financial news network, provides continuous coverage of the people, companies and ideas that move global markets. Broadcasting from centers in New York, London, Singapore and Hong Kong and powered with an unparalleled news gathering team of 2,300 news professionals in 146 bureaus across 72 countries worldwide, Bloomberg Television delivers real-time business news to over 310 million households globally. In addition to major cable and satellite providers, Bloomberg.com and Bloomberg Mobile, the network is available on the Bloomberg Professional service, used by the most influential individuals, corporations, financial institutions, investors and the world's central banks, commercial banks, government agencies, legal professionals and news organizations. With Asia being one of the most active growth regions in the world, Bloomberg Television is delivering more local content, and fast, accurate, unbiased, market-moving news from market makers in Asia. For more information on Bloomberg Television, please visit www.bloomberg.com/tv and follow us on Twitter (@BloombergTV) and Facebook.
About Trade & Development Bank of Mongolia
About Trade & Development Bank of Mongolia TDB, with its leading position in universal banking, offers a full range of services, including large corporate, SME and retail lending and acts as a primary lender to most of the country’s leading corporations. The Bank has consolidated its market-leading position in the handling of international trade finance and remittance, with access to credit lines from major international lenders and correspondent banking relationships with over 150 international financial institutions. TDB offers over 100 types of international standard banking products and has about 1000 highly qualified staff providing personal attention and user friendly banking services through a network of 43 branches and settlement centers. TDB is undoubtedly the major player in the financial and banking markets as well as a major innovator of the Mongolian financial sector. In 2004, TDB was the first bank in the country to receive the investment from the Asian Development Bank (ADB) and International Finance Corporation (IFC). In 2006 TDB became the first commercial bank in Mongolia rated by Moody’s Investors Service. TDB is the first ever Mongolian bank to issue bonds and the only Mongolian repeat bond issuer. The Bank continuously increases its income figures and asset size.
APAC, Belina Tan, email@example.com, +65-6231-3637
EMEA, Catrin Thomas, firstname.lastname@example.org, +44 7917 000 808
US, Amanda Cowie, email@example.com, +1 212 617 1689
TRADE AND DEVELOPMENT BANK OF MONGOLIA SUCCESFULLY ISSUED USD 300 MILLION THREE YEAR BONDS
Trade and Development Bank (TDB), the oldest and the largest corporate bank in Mongolia, successfully issued USD 300 million senior unsecured notes listed at Singapore Stock Exchange on 13 September 2012. This was the fourth time that TDB tapped the international bond markets, after two successful senior unsecured deals in 2007 and 2010, respectively, and a subordinated notes issuance in 2010. In fact, TDB is the first ever Mongolian bank to issue bonds and the only Mongolian repeat bond issuer. With the world economy stagnated by the Eurozone debt crisis, an unstable financial environment in the United States and a slowdown in China, the bond issuance marks the first ever ‘benchmark’ sized bond issue from TDB and the Mongolian banking sector as a whole. The bond issuance is a notable achievement for a B1 rated country like Mongolia. The transaction met with overwhelming demand and produced an orderbook of USD 1.2 billion, comprising 150 accounts, an unprecedented number compared to previous USD 75 million and 175 million bonds which TDB has been implementing within its EMTN (Euro Medium Term Note) program since 2007.
TDB’s new 2012 bond shows that Mongolian commercial banks have credibility with investors even in the current condition of the global economy. The first bond issued by TDB in 2007 worth USD 75 million, was duly repaid on maturity in January 2010. After the repayment of its first issue, TDB’s second issue of USD 150 million took place in October 2010. The new issue of senior notes carries a coupon of 8.5% and compares favorably with the first issue, which had a coupon of 8.625 %. The bank’s strong financial performance, positive record on previous issues and overall sound fundamentals have enabled it to solicit a strong market response, resulting in a 4 times oversubscription of the offering.
The issue met TDB’s objective of a broad institutional placement with asset managers and hedge funds taking up 60%, private banking accounts 25%, financial institutions 15%. Geographically, Asia took up 60% and Europe and offshore US together took up the other 40%.
The combination of strong demand in the debt markets, and high expectations for the future performance of the Mongolian economy has whetted investors’ appetites for opportunities in Mongolia. This USD 300 million issue affirms the market confidence in TDB’s strategy, financial strength and management, and affirms TDB’s standing in the international markets. It is an event of great significance within the bigger picture of further opening up Mongolia’s economy to the world and strengthening TDB’s ability to grow strong and competitive. It has laid a solid foundation for TDB’s strive toward an international-class modern commercial bank. With the proceeds of the note issue, the bank will be in a good position to meet the expected increased financing needs of its clients as the economy enters a period of strong growth.
Today, TDB offers 60 types of international standard domestic and international banking products to corporate and retail clients through 45 branches in Mongolia with over 1100 dedicated staff.
TDB HAS WON THE “BEST TRADE FINANCE BANK OF MONGOLIA” AWARD FOR THE SECOND CONSECUTIVE YEAR
Trade and Development Bank of Mongolia has proven itself to be the most experienced trade finance facilitator with its widest international correspondent relationships and highly qualified trade finance services among local banks in Mongolia and has been awarded as the “Best Trade Finance Bank of Mongolia” for the year 2011 and 2012.
This prestigious award was presented by Global Trade Review (GTR), the world’s leading trade finance international magazine, which recognizes the best in the field annually through majority votings from other international banks and financial institutions.
Furthermore, TDB’s respected partnering banks in trade finance and syndicated facilities such as HSBC bank, Citibank, Korea Exchange Bank and ICBC bank were also awarded as the best in their respective countries.
TDB wins the “Best Bank of Mongolia 2012” award
TDB has won the prestigious “Best Bank of Mongolia 2012” award by FinanceAsia, a leading financial publication in the Asia-Pacific region, during an Award ceremony held at Four Seasons Hotel, Macau on August 24, 2012, which announced the region’s best banks and financial institutions.
FinanceAsia, one of the most authoritative publications of financial news and analysis for the Asian financial markets, has been organizing the Country Awards for the past 10 years. The winners of the award are determined according to an assessment on the bank’s key financial performances as well as profit indicators such as return on assets, return on equity and loan portfolio quality. Therefore, the FinanceAsia’s Country Award for Achievement has distinguished features comparing to other awards and is regarded highly in the financial industry.
The highlight of this year has been that the “Best Bank of Mongolia” award was presented for the first time upon conducting assessments among Mongolian banks over the last 3 years. Within the scope of these assessments, factors such as the bank’s international standing, reputation, scope of banking activities as well as financial capabilities were taken into account.
TDB has received two prestigious awards from internationally recognized publications since the commencement of year 2012. The achievements further affirm the bank’s position as the leading bank in Mongolia with financial capability which is truly approved internationally.
TOGETHER TOWARDS PROSPERITY
TDB is implementing Environmental and SocialManagement System
Environmental and Social (E&S) risks are very much present in the Mongolian business environment. They directly impact the companies involved, but also have an indirect effect on their financiers. The mining, raw materials of livestock (e.g. cashmere, leather and wool) and construction sectors are most directly impacted. Dangerous or bad working conditions, pollution of soil, air and water, noise are just a few examples of E&S risks in these sectors. And when a client is involved in these kind of practices, the reputation, ability to comply to local laws and regulations and the financial position of the bank who financed the activities is also at risk.
Take for example safety within the construction sector - a booming business in a strong developing economy like that of Mongolia. When employees work under dangerous conditions - for instance when employees do not wear helmets, work in the evening without correct lighting and are working at high construction sites without being properly secured - the company is at risk. These working conditions can lead to strikes or even a shut down after inspection, which might result in delay of the construction process, loss of income and of a license to operate. The bank as a financier of the construction company might have a credit or liquidity risk when the company is not able to (re)pay the interest or the loan amount itself as a result of the delay or loss of income and it might also have an impact on their reputation.
TDB aims to be the leading bank in Mongolia and wants to demonstrate its leadership by integrating environmental and social principles into the banks business operations. To help TDB in reaching this goal PwC's E&S experts have supported TDB in creating policies and procedures to manage and assess E&S risks. PwC also provided an awareness training to a large group of account managers and risk analysts of TDB, which was aimed to help the participants identify E&S risks, assess their impact, ask the right questions to the client and take the appropriate corrective actions. By assessing E&S risks TDB wants to help its clients to be aware of E&S risks, perform their business in a responsible manner and to reduce their business risks. Alongside the bank actively tries to mitigate its own business risks, so it can remain a enduring profitable organization.
FMO provides USD 20 million loan to Trade & Development Bank of Mongolia
The Hague – 12 June 2012
FMO (the Netherlands Development Finance Company) has provided a 5-year USD 20 million combination of a subordinated Tier 2 (USD 10m) and senior (USD 10m) loan to Trade & Development Bank of Mongolia (TDB). TDB is one of the three large banks in Mongolia and the major corporate business bank in the country.
Mongolia experiences a mining-driven economic boom and TDB plays an essential role in fulfilling the strong economic potential of the country. By developing an Environmental and Social Management System (ESMS), TDB will set an important example in Mongolia’s relatively small domestic financial sector. FMO supports this process with a margin reduction incentive.
In addition, by providing Tier 2 capital we enable the bank to continue its successful growth trajectory. The transaction complements FMO’s Asian portfolio in Mongolia very well, since existing clients XacBank and KhanBank both have a strong focus on smaller SME’s and retail finance.
TDB, with its leading position in universal banking, offers a full range of services, including large corporate, SME and retail lending and acts as a primary lender to most of the country’s leading corporations. The Bank has consolidated its market leading position in the handling of international trade finance and remittance, with access to credit lines from major international lenders and correspondent banking relationships with over 150 international financial institutions. TDB offers over 100 types of international standard banking products and has about 1000 highly qualified staff providing personal attention and user friendly banking services through a network of 43 branches and settlement centers. TDB is undoubtedly the major player in the financial and banking markets as well as a major innovator of the Mongolian financial sector.
The Netherlands Development Finance Company (FMO) is the bilateral private sector development bank of the Netherlands. FMO invests in the private sector, which can serve as an engine of sustainable growth in developing markets. To this end, we provide capital, knowledge and partnerships to ambitious entrepreneurs. With an investment portfolio of € 5.9 billion, FMO is one of the largest bilateral private sector development banks worldwide. Our focus is on three sectors which create a high development impact: financial institutions, energy and agribusiness, food & water. This focus enables us to offer tailor-made finance solutions, based on real expertise. In other sectors, FMO teams up with renowned partners to combine local networks, knowledge and experience. We believe that our approach will lead to lasting economic and social development, which will empower people to employ their skills and improve their quality of life.
We provide you information on all kinds of banking products and services offered by TDB
We provide you information on all kinds of banking products and services offered by TDB, and respond to your requests quickly and accurately. Please contact us at any time at following contacts:
Telephone No : 1977 (within the country)
+976 70161988 (from overseas)
Send an e-mail: firstname.lastname@example.org
Live chat with an operator: Click here for LIVE CHAT
Call service includes:
- Payment card related enquiry
- ATM locations and time table
- Branch locations and time table
- Currency exchange rate
- Electronic banking products and services
- Money Gram, International and Domestic transfer services
- Current account and Savings products
- All types of loan services
- Service fees and charges
- New products and services, discount and promotions
- Receive complaints and requests related the bank’s products and services
Please note that additional charges will be added on your telephone bill when you contact us at 1977.
Together Towards Prosperity
TDB WAS THE “BANK OF THE TRADE FAIR” OF “FUTURE MONGOLIA-2012”, THE FIRST WORLD CLASS INTERNATIONAL TRADE FAIR
Trade and Development Bank (TDB) has been actively participating in various seminars and forums for the purpose of promoting foreign investment and trade and the international trade fair “Future Mongolia 2012” and Conference of stable development were successfully held in the Buyant Ukhaa sport complex in Ulaanbaatar between May 16th and 18th 2012.
The special feature of the fair was that over 100 internationally reputable and world class producers, suppliers, and related service companies from 14 different countries had participated in the fair to present their latest machineries, technologies and equipments that function in the environment protection, electric energy, roads, transportation, construction and mining industries.
TDB acted as the “Bank of the Trade Fair” and the Platinum sponsor, promoted its products and services at the exhibition hall and organized traditional music performances as well as local beer serving for visitors, hence receiving appreciations from the trade fair visitors. Moreover, the event was co-organized by the German engineering federation VDMA /Verband Deutscher Maschinen- und Anlagenbau/ with the support of Mongolian government.
On the first day of the conference, President of TDB, Mr.Randolf Koppa, gave a presentation within the framework of “Financial Issues” addressing the necessary financing and projects, which are to be implemented in the mining and infrastructure sectors.
Furthermore, on the 3rd day of the conference, the Director of International Banking Department of TDB Ms. Erkhembayar made a presentation on the topic of “ Trade Finance Business”, which contained TDB’s brief introduction, Foreign trade payment and financing instruments as well as introduction of long-term financing instrument, which is the main banking product in the center of attention among the mining sector.
Over the past years, TDB signed a long-term financing agreement with the German’s reputable banks and financial institutions namely- BHF, Commerzbank AG, AKA, and Bayarn LB and within the scope of these Agreements the Bank is providing long-term and low-interest financings for projects and import of equipments from Germany and other countries. As a bank that supports the mining sector, TDB is ready to further assist, advise and to cooperate with our customers.
MONGOL BANK TO INTRODUCE NATIONAL CARD SERVICE
The Central Bank has announced a national brand for card services that it expects will overtake the market for card services, pushing aside the international brands Visa and MasterCard.
Trade and Development Bank of Mongolia (TDB) is the first to distribute cards backed by the new brand, T, with release them from April 12, 2012.
Officials have also discussed how the cards could be used for the distribution of the Human Development Fund (HDF) using these cards. The Bank of Mongolia has implemented a policy on the usage of the card for government services, including for pensions payments and benefits, in addition to payments to shareholders of Erdenes-Tavan Tolgoi. However, it will be up to commercial banks to distribute the cards, not the central bank. The central bank will only be responsible for maintaining policies and regulations.
Officials believe these cards will be able to overtake international cards as they require additional fees to banks abroad. Using these cards will direct surcharges to domestic banks. It will be up to commercial banks to decide on the fees for card use with ATMs.
Last year statistics showed that even those who receive their salaries through direct deposit to their bank accounts preferred to pull cash from banks to use at stores. Officials believe these new cards will increase the number of payments made through cards, which would create more records for money received by companies and prevent them from avoiding tax payments.
TRADE AND DEVELOPMENT BANK LAUNCHES FIRST SECURITIES CLEARING BANK
The State Property Committee (SPC) of Mongolia has been working on creating favorable legal environment of stock market, improving infrastructure and delivering the clearing system to the world standard at the managerial and organizational level pursuant to the long-term strategic partnership agreement with London Stock Exchange.
Within the framework of aforementioned work, transferring of securities payment to “T+3” procedure in accordance with introducing “Millennium IT” system of stock exchange is currently taking place, thus allowing for a provision of convenient and flexible payment medium for the investors.
Furthermore, the undertaking of having securities payment clearing service executed through commercial banks is well under progress and it has been first launched with Trade and development bank of Mongolia, the market leading bank.
Trade and Development Bank and its “TDB Capital” LLC, 100% wholly owned subsidiary and complex investment banking service provider, had been chosen as the First Clearing Bank to execute securities clearing; and triple-agreement of cooperation was signed between Mongolian Securities Clearing House and Central Depository and “TDB Capital” LLC.
Aforementioned agreement will assist payments to be prompt, risk-free, and secure due to having securities payments made through a Bank; and the agreement has an important significance on establishing foundation of involving other commercial banks to the stock market.
Moreover, Trade and development bank and TDB Capital LLC have always been contributing and supporting Mongolian stock market development, which is one of the main economic growth leverages of Mongolia.
TDB has become officially corporate member of the Professional Risk Managers’ International Association
TDB is one of the first Mongolian commercial bank that has become an official member of Professional Risk Managers’ International Association (PRMIA).The bank always had been supporting the risk management’s developments and its intentions.
The PRMIA is a non-profit professional association, which are represented international standards of the Risk Management activities in globally by 60 sub branches in major cities and seventy thousand members in all around the world.
Furthermore we believe TDB will continually maintain its market leading position of the Mongolian financial sector by its risk management activities and its developments. Although, rely upon recent activities the bank looking forward to participate and improve its relationship within various international organizations. The bank considers this will lead us to the continuously achievements and granted by positive values from the international rating agencies of risk managements.
Additional information’s about the Association is summarized on following link: www.prmia.org
GOLDMAN SACHS INVESTS IN TRADE AND DEVELOPMENT BANK OF MONGOLIA
Trade and Development Bank of Mongolia (TDB) today announced that The Goldman Sachs Group, Inc. (Goldman Sachs), a leading global financial services firm, will acquire a 4.8 percent stake in TDB. The investment will assist TDB in growing its business to meet the expected increased needs of its clients as Mongolia’s economy enters a period of strong economic growth.
Mr. David Ryan, President of Goldman Sachs Asia Ex Japan, said: “This investment affirms Goldman Sachs’ confidence in TDB’s strategy, financial strength and management.”
"Mongolia is a booming and fast developing economy driven by growth in mining sector and commodities exports. Goldman Sachs’ global expertise and financial strength will help us grow further and enhance our offering for our clients.” said Balbar Medree, CEO of TDB.
TDB, the oldest and one of the largest banks in Mongolia, prides itself on its leading position in the Mongolian universal banking market. It acts as a primary lender to most of the country’s leading corporations as well as foreign corporations and foreign representative offices across all major industrial and commercial sectors. TDB is a major innovator in financial services in Mongolian. In 2004, TDB was the first bank in the country to receive an investment from the Asian Development Bank (ADB) and the International Finance Corporation (IFC). In 2006, TDB became the first commercial bank in Mongolia rated by an international rating agency. TDB remains the country’s only issuer of international publicly traded debt.
Sole Arranger: TDB Capital LLC
TDB Capital, TDB’s wholly owned subsidiary and its investment banking arm, is Mongolia’s first investment banking services provider, providing corporate finance, research and advisory, securities brokerage and asset management services. In addition to this deal, TDB Capital has made several investments since its incorporation.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
TOGETHER TOWARDS PROSPERITY
TDB has opened information call center 1977
We are happy to inform you that we have opened 24/7 information call center, 1977. You could get any information related to our bank’s product and services from our call center 1977.
We hereby kindly inform you that starting from 12th Dec 2011, card inquiry (number) phone 326289 will /be no longer used/ be closed.
If your friends or family live in oversea, they would like to contact us, please dial (976) 70161988.
You can get TDB’s any products and services information from throuhg our call center 1977 any time without losing your precious time.
Together Towards Prosperity
TDB has recently signed “Import Finance Facility Agreement” with Chinese Biggest Banks
TDB has signed “Import Finance Facility Agreement” with Chinese Large Banks, such as “Agricultural Bank of China”, “Industrial and Commercial Bank of China” and “Baoshang Bank” of Baotou City.
These import finance agreements enable our customers, who import goods from China to obtain financing and loans both in USD and CNY. Mongolian companies mostly use CNY when importing equipments from China. TDB has become the first bank among local banks to provide financing in CNY offering the convenience to customers and protecting them from foreign exchange rate risks.
Since its establishment, TDB has established valuable and efficient relations with international reputable bank and financial institutions. Today TDB has correspondent relationship with over 150 international financial institutions and 37 nostro accounts with HSBC Bank N.A, Citibank N.A, Bank of Tokyo-Mitsubishi UFJ ltd, Commerzbank AG, Credit Suisse, ING N.A. and other banks. As of September 30, 2011, TDB has cooperation with 28 large scale institutions to provide Trade Finance facility services.
Together Towards Prosperity!
Bloomberg Media Group & TDB Announce Formation of Bloomberg TV Mongolia
Bloomberg Media Group today announced the formation of Bloomberg TV Mongolia, a new Bloomberg Television channel in partnership with The Trade & Development Bank of Mongolia (TDB), the oldest and one of the largest banks in Mongolia. Bloomberg TV Mongolia, scheduled to launch in March 2012, targets a fast-developing region in Asia, with one of the best-performing stock markets in the region and an economy driven by growth in commodities and exports to China.
“Bloomberg TV Mongolia is the first business and financial news network targeted at this rising new market in Asia,” said Gary Groenheim, Commercial Director of Bloomberg Television, Asia-Pacific. “We’re pleased to partner with TDB to offer the local population better access to international business news, as well as serve business travelers as Mongolia continues to play a greater role in global trade and exports to China.”
“Mongolia is a booming and developing economy. Bloomberg TV Mongolia will target the political decision makers and business leaders of Mongolia with essential and accurate news, data and analytics. As all Mongolians now own shares in the Tavan Tolgoi Mining Project, the channel will be a valuable new education source.” said Randolph Koppa, President of TDB. “Today, TDB introduces a new era of media to Mongolia. With its partner, Bloomberg Media Group, TDB will present a powerful combination of expertise and knowledge of the local economy with global business and financial insight.”
Bloomberg TV Mongolia will offer a mix of locally produced, local language content as well as English language news from Bloomberg Television, the 24-hour global business and economic news network available in over 270 million homes worldwide. The network will be headquartered in Ulan Bator.
The only truly global business news network with hubs in New York, London and Hong Kong, Bloomberg Television covers business and financial news, markets and economic events worldwide. Trade & Development Bank of Mongolia is a leading bank in the country and the oldest commercial bank in Mongolia, established in 1990 and fully privatized in 2002.
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength - delivering data, news and analytics through innovative technology, quickly and accurately - is at the core of the Bloomberg Professional service, which provides real time financial information to more than 310,000 subscribers globally. Bloomberg’s enterprise solutions build on the company’s core strength, leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. Through Bloomberg Law, Bloomberg Government, BNA and Bloomberg New Energy Finance, the company provides data, news and analytics to decision makers in industries beyond finance. And Bloomberg News, delivered through the Bloomberg Professional service, television, radio, mobile, the Internet and two magazines, Bloomberg Businessweek and Bloomberg Markets, covers the world with more than 2,300 news and multimedia professionals at 146 bureaus in 72 countries. Headquartered in New York, Bloomberg employs more than 15,000 people in 192 locations around the world.
About Trade & Development Bank of Mongolia
TDB, with its leading position in universal banking, offers a full range of services, including large corporate, SME and retail lending and acts as a primary lender to most of the country’s leading corporations. The Bank has consolidated its market-leading position in the handling of international trade finance and remittance, with access to credit lines from major international lenders and correspondent banking relationships with over 150 international financial institutions. TDB offers over 100 types of international standard banking products and has about 1000 highly qualified staff providing personal attention and user friendly banking services through a network of 43 branches and settlement centers. TDB is undoubtedly the major player in the financial and banking markets as well as a major innovator of the Mongolian financial sector. In 2004, TDB was the first bank in the country to receive the investment from the Asian Development Bank (ADB) and International Finance Corporation (IFC). In 2006 TDB became the first commercial bank in Mongolia rated by Moody’s Investors Service. The Bank continuously increases its income figures and asset size.
TDB opens 2 more settlement centers in Ulaanbaatar
TDB is celebrating twenty first anniversary of continued growth, ingenuity and service excellence today, we would like to say a big THANK YOU to you our cherished customers and partners for being with us throughout this journey and also being a part of this success story.
In honor of its 21st anniversary, TDB has opened 2 more settlement centers as part of its continued expansion plans of existing network across the country. New branches have started their operations at the following locations: “Erdenes” settlement center in the shopping street in 3rd microdistrict in the Bayangol district, and “Zaisan” settlement center in the Irish Castle in Khan-Uul district.
The new settlement centers' openings are part of TDB’s continued commitment and approach to provide outstanding banking service and convenience to our valued customers. The new locations in our growing network of branches were strategically selected to serve customers in important business areas of UB and they are positioned to serve both corporate and individual clients to satisfy their increasing needs.
Founded in 1990, TDB has become a leading banking and financial services provider in Mongolia. Today with total assets of MNT 1.7 trillion and own capital of MNT154.4 billion, TDB offers over 100 types of international standard banking products through its 900 highly qualified and user friendly staffs.
TDB is the best “Investment envoy”
Foreign Investment and Foreign Trade Agency of Mongolia (FIFTA), the government implementing agency celebrated its 15th anniversary and during the ceremony FIFTA selected the Best Foreign Investment supporting organizations for the promotion and facilitation of foreign direct investment and foreign trade in Mongolia.
On this ceremony Trade and Development Bank (TDB) of Mongolia has received award of “Investment envoy”. The award of “Investment envoy” expresses importance of TDB‘s contribution to the promotion of Mongolia as a destination for new investment and business, providing investors with first-hand information; advice and guidance on making investment and doing business in Mongolia; facilitation of foreign investment and foreign trade towards meeting the national goals of industrial development and export growth.
TDB has always played a principal role in investment conferences, which draw international level experience with high level investors and decision-makers. The bank organizes every year “Investment forums” in cooperation with FIFTA for the last 10 years in order to increase efficiency of FDI in the country’s economy, to advertise and influence in creating more favorable environment for foreign investors, to implement new technology and management methodology and to share views and information, explore ideas with foreign investors.
TDB acts as a primary lender to most of the country’s leading corporations as well as foreign corporations and foreign representative offices across all major industrial and commercial sectors and has correspondent relationships with over 150 international financial institutions, thus becoming financial gateway to Mongolia.
TOGETHER TOWARD PROSPERITY
TDB was awarded by the GTR journal with "Best trade finance bank in Mongolia 2011"
TDB has proven itself to be the premier trade finance facilitator taking the majority of votes from world’s major financial institutions to win “The Best Trade Finance Bank of Mongolia 2011” award.
EMV MasterCard and special offers
Please click here for more detailed information
TDB OPENS 3 MORE BRANCHES IN ULAANBAATAR
In honor of its 21th anniversary, TDB has opened 2 more settlement centers and a branch as part of its continued expansion plans of existing network across the country. New branches have started their operations at the following locations: “Gandirs” settlement center in the Gandirs Shopping center, “Khar Khorin” settlement center in the 1st micro region, and “Central Tower” in the Central Tower in UB. In addition, the bank’s Narnii zam settlement center extended its operation in the Diamond center, 13th micro region and has started its operation officially on Monday 29, August 2011.
The new branch openings are part of TDB’s continued commitment and approach to provide outstanding banking service and convenience to our valued customers. The new locations in our growing network of branches were strategically selected to serve customers in important business areas of UB and they are positioned to serve both corporate and individual clients to satisfy their increasing needs.
The bank is pleased to announce that 4 more branches are scheduled to open later in this year at other key locations in the country.
Founded in 1990, TDB has become a leading banking and financial services provider in Mongolia. Today with total assets of MNT 1648.8 billion and own capital of MNT153.2 billion, TDB offers over 100 types of international standard banking products through its 900 highly qualified and user friendly staffs and a network of 40 branches.
President of TDB receives the Order of the Polar Star
Randolph Koppa, President of Trade and Development Bank of Mongolia (TDB) and TDB Capital LLC has received the Order of the Polar star, Mongolia’s highest decoration.
Mr.Koppa was recognized for his contribution to his many years of service in building stronger Mongolian banking and financial sector and making invaluable contributions to the rapid development of Mongolian economy. In 2004, he was appointed as a CEO of TDB, as part of the management and technical assistance program provided to TDB by ING Bank. Since 2007, he serves TDB as its President. He has more than 40 years experience in the international banking industry and worked in 12 countries throughout the world. As an international banker, the efforts he made in recognizing the Mongolian banking sector in the international banking and financial markets are inestimable.
Thanks to President Koppa’s dedication and efforts, TDB has achieved many incomparable successes and became a pioneer in many events such as creating the most prudent risk management system in the Mongolian banking sector and issuing first time ever bond among the Mongolian companies in the international capital markets. In 2006 TDB became the first commercial bank in Mongolia rated by Moody’s Investors Service. In addition to his duties at TDB, Mr.Koppa serves as Chairman of the Mongolian Mortgage Corporation (MIK) and is a member of the Board of Directors of the Business Council of Mongolia and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
In 2007 Mr. Koppa was also honored by the Mongolian National Chamber of Commerce and Industry with its SILK ROAD AWARD for his contribution to sustainable growth in the local financial sector.
Independent Auditor's report 2010
Due to relocating TDB Enkhtaivan branch, the Private Banking center will be moved temporarily to the “TDB -220 k” settlement center.
Afterward, the center will be relocated in 1st floor of Continental hotel from 1st May 2011.
We’re apologizing for the inconvenience caused by this event and thank you for your understanding.
220 myangat settlement center
Chingiss avenue-13, Sukhbaatar district, 1st khoroo, Landmark building, 1st floor
Tel: +976 99118428, 99110282, 70100073
Dear Customers of TDB Enkhtaivan branch
TDB is relocating its Enkhtaivan branch and for this occasion the Enkhtaivan branch will be closed to public between 18 Apr. through 19 Apr. 2011. For your convenience, please use other TDB branches for your daily banking operations.
Bayanzurkh district, Peace avenue-25,
12th khoroolol, "Nomnoo" tower
Phone: +976 11 453525
Monday - Friday: 9:00-18:00,
Saturday, Sunday: Closed
||Gurvan gal branch
Sukhbaatar district, 1st horoo, "Monnis" tower
Phone: +976 11 310386
Monday-Friday: 9:00-18:00, Saturday,Sunday: Closed
||220 myangat settlement center
Chingiss avenue-13, Sukhbaatar district, 1st khoroo, Landmark building, 1st floor
Phone: +976 70100073, 70100072
The branch will be open in a new location on the 20th April, 2011 to provide a usual full range of banking services. We’re apologizing for the inconvenience caused by this event and thank you for your understanding.
New location: Grand Office, on the right side of the Ministry of Foreign Affairs and Trade building.
TDB partners with Euroclear, the World’s leading provider of post-trade services.
Trade and Development Bank of Mongolia became the first bank within local banks to establish account at Euroclear on March 2010.
Euroclear is the world’s leading provider of post-trade services, covering all asset types including bonds, equities, funds and derivatives.
Euroclear's clients comprise over 2,000 financial institutions located in around 90 countries worldwide. It includes the biggest custodians, broker dealers and central banks, plus the leading investment banks, issuers and institutional investors.
The assets Euroclear holds for clients were valued at €21.9 trillion at the end of 2010. The total value of securities transactions settled by the Euroclear group is over €500 trillion per annum. User-owned and user-governed, Euroclear settles more than 150 million transactions a year in over 30 currencies.
Becoming a client of Euroclear gives TDB an access to the widest range of counterparties, financial instruments, it also guarantees reliable servicing and professionalism from the world’s leading post-trade provider.
Together Towards Prosperity
From 1st Mar 2011, the domestic cash and non cash transfer between banks is subject to a fee of MNT 300. Please understand that this change is due to MongolBank's decision on the 1st Feb 2011 to increase its inter-bank fees on the domestic transfers.
Thank you for your understanding.
R.Koppa: Mongolia’s coal mining boom phase is starting
TDB, the leading corporate bank of Mongolia, paricipates in“Coal Mongolia 2011” conference, to be held on Februrary 24th -25th , 2011 in UB as a “Bank of the event”. We have discussed with Mr. Randolph Koppa, President of TDB, about coal sector in Mongolia.
First of all, thank you for your support to "Coal Mongolia 2011" event. In the last years, Mongolian mining sector is developing rapidly, especially the coal sector is booming, attracting a bunch of domestic and foreign investors. Shall we start our interview with this?
Fine. TDB always has played a principal role in such conferences, which draw international level experience with high level investors and decision-makers. TDB as the leader in the corporate and investment banking market in Mongolia thinks that it is important to share knowledge and promote a spirit of partnership with government and investors for the welfare of the Mongolian economy.
Mongolia's vast reserves of high-quality coal, combined with its close proximity to China, the world's largest consumer of coal, and high demand Asian markets - make Mongolia a growing strategic player in the global coal market. In other words, we can say that Mongolia’s coal sector boom phase is starting.
Also we hope that it will give TDB a great opportunity to connect with many investors who are interested in coal business in Mongolia.
The observers and experts prospect huge growth in Mongolia’s future coal sector and some of them even say that the coal resources will replace the foreign currency resources. What is your opinion about this?
Mongolia has total of 125 billion metric tons of coal reserves. Statistics say during 2010, Mongolia produced 22.5 million tons of coal and it amounted about USD 1 billion in revenues. There are some predictions that with the start of major coal mine projects such as Tavan Tolgoi, the coal production will be increased up to 50 million tons per year. As we know, besides TT and Nariin Sukhait in the north side of Mongolia, there have been discovered more big coal deposits. Therefore, the coal industry undoubtedly will bring considerable amount of income to the country’s economy. But in order to extract and export proven huge coal reserves as efficiently as possible, significant infrastructure and transport investment will be needed.
Furthermore, World coal consumption is about 7 billion tons per year and it is expected to increase 48% to 10 billion tons by 2030. More than 40% of the world electricity production uses coal. Coal imports in Asia will be increased 30% in next decade to 850 million tons per year. This increasing consumption means Mongolian production could increase significantly for several decades.
So, I see a bright future for Mongolia’s coal industry. Of course, we shouldn’t forget also about many possible challenges to be confronted with, such as electricity, water supply, employees, price policy and financing of suppliers.
The inflow of foreign currency is lately increasing and MongolBank, the Central bank of Mongolia, is trying to absorb the surplus. Although it is a good sign with the strengthening of Mongolian tugrugs, but in the same time, it supports the import side. The risk is that Mongolian producers could be hurt in trying to compete with imported products. In your opinion, what should we do and how we can manage it in order to benefit from strengthening of tugrugs?
It is true that some Mongolian goods may be more expensive for exporters; however the certain goods, such as cashmere, have a unique value which is less price sensitive. Some local producers of consumer goods and building materials will face difficulty against imported goods. The weakening competitiveness of local manufacturing and services in resource rich countries has been termed Dutch Disease. The Government of Mongolia is aware of this potential problem, and will try to undertake measures which have been helpful in other countries. Most important will be strong fiscal discipline and sound monetary policy to manage the forces of growth and inflation along with currency appreciation. The recently approved Medium Term Budgetary and Fiscal Stability Law, if followed prudently, will help.
The investment is and will increase in the coal mining sector and in its supply chain with the increasing number of companies working in the coal sector. Do you think the Mongolian banks are ready to support the flow of investment and mining companies?
Absolutely. The investment will be increased dramatically. The commercial banks have started preparing themselves for the economy boom. Today commercial banks such as TDB already have the possibility to deliver a range of international standard banking services, such as LC, export financing, factoring, leasing and trade finincing. TDB, for one, works closely with foreign investors in cash management, trade finance and supplier loans as well as personal banking services. We have dedicated officers to handle foreign companies as well as the necessary expertise in mining finance.. An addition, the bank is developing its investment banking activities to be able work with clients on raising funds on the international markets.
Is the investment environment of our country is welcoming for foreign investors? The stability of investment environment is the utmost importance for investors. Do you think Mongolia is still offering this kind of stability?
The signing of the OT agreement in October 2009 has been a signal to the investment world Mongolia’s intention to provide a stable working environment for major mining investment. The subsequent IPOs of South Gobi Energy and Mongolian Mining Corporation on the Hong Kong Stock Exchange have further enhanced investor confidence. The move now to reform the Mongolian Stock Exchange to best international practice further underscores the intention to provide a more secure investment environment.
Of course, you are expecting many important outcomes from "Coal Mongolia 2011" event. What are your bank's expectations from it? What are the policies of your bank related to the coal mining sector?
TDB hopes that the visiting delegates and all participants will get a clear picture of the development in coal mining here, together with an understanding of the many challenges, such as transport and infrastructure, which are being addressed.TDB works actively with coal mining companies not only with banking services but also with financing of the multitude of companies supplying goods and services to them. By sharing views and information, exploring ideas, and giving investors, operator and officials a chance to meet, the conference itself is very important for contributing to the country’s economy and public and private sector development.
TDB Again Successfully Taps International Debt Capital Market for USD 175 million
Trade and Development Bank of Mongolia (TDB) successfully launched an issue of USD150 million three year Senior Notes on October 18, 2010 and USD 25 million of five year subordinated notes to increase the bank’s capital. This marks the second time the country’s first and still only issuer of debt on the international publicly traded debt markets has successfully tapped the market for funding.
The first issue, USD 75 million issued in January 2007, was duly repaid on maturity in January 2010. These issues have been part of an EMTN (Euro Medium Term Note) programme, listed on the Singapore stock exchange and arranged for the bank by ING Debt Capital Markets, which allow issuance of securities up to USD300 million.
After the repayment of its first issue, TDB has waited for market conditions to again enable obtaining funds at attractive rates. The new issue of senior notes carries a coupon of 8.5% and compare favorably with the first issue, which had a coupon of 8.625 %. It is believed the bank’s strong financial performance, the good record on its previous issue and overall sound fundamentals enabled it to solicit strong market response, resulting in the offering being almost 3 times oversubscribed.
The issue met TDB's objective of a broad institutional placement with asset managers taking up 42 %, private banking accounts 25 %, hedge funds 18 % and financial institutions 11%. Geographically, Asia took up 50 % and Europe and offshore US together took up the other 50 %.
The combination of strong demand in the debt markets, the robust current and expected future performance of the Mongolian economy on the basis of the development of the Oyu Tolgoi copper mine and the rising sales of coking coal, iron ore and crude petroleum to China, have whetted investors’ appetites for Mongolia opportunities.
The successful issue not only affirms TDB’s standing in the international markets, but also is likely to open more possibilities for other Mongolian corporations to enter the international debt market.
This USD 175 million issue affirms the markets confidence in TDB’s strategy, financial strength and management. With the proceeds of the note issue and subordinated notes of USD 25 million, which marks the first time ever in Mongolia for its kind, the bank will be in a good position to meet the expected increased financing needs of its clients as the economy enters a period of strong growth.
TDB is the leading and oldest bank in Mongolia, offering 60 types of international standard domestic and international banking products to corporate and retail clients through 30 banking offices in Mongolia with over 700 dedicated staff.
Together Towards Prosperity
EMV Visa Card
Trade & Development bank of Mongolia has begun issuing EMV chip-based payment cards, which is a secure e-payment card providing security for all electronic banking transactions (ATM, POS and Web). EMV chip-based technology is protected by various features against fraud transactions and has unique online cryptogram.
So, customers of our bank can be able to use EMV Visa card with no worries and no risks anywhere in the world.
From 19th Aug to August 25, 2010, TDB replace its magnetic VISA cards with EMV VISA cards for free. We encourage our international VISA cardholders to come to all our branches to benefit from this promotion.
Also, new international EMV VISA cardholders will pay no annual fee for the first year at any branches of the bank during the above mentioned dates.
For more information:
Call at: 976-11-326289
Together towards prosperity
Immediate money transfer service
Successful cooperation between Trade and Development Bank of Mongolia and Korean Exchange Bank has signed the agreement to launch an immediate money transfer service “Easy One” for individuals, students, and who having a business with Korea or living in Korea. The “Easy One” service will provide the cheapest, guaranteed and immediate money transfer from Korea to Mongolian.
Since signing the agreement Mongolian citizens who living in the Korea able to use the most guaranteed, cheapest and immediate money transfer service “Easy One” for transfer money from Korea to Mongolia.
There is massive advantages for using the “Easy one” service for instance all transferred money will be covered official insurance and although able to transfer seven days a week.
Moreover the person who transfers the money be capable of check transfer’s date, amount, exchange rate, and fees etc by SMS and E-mail.Trade & Development bank of Mongolia have good relationship with most of the Korean reputable banks and financial institutions, which includes Korean Exchange bank, Korea EximBank, Hana Bank, Shinhan Bank, and Korean Development bank.It’s rightfully to reveal that TDB and Korean Exchange Bank have 20 years good correspondent relationship.
Together Towards Prosperity
TDB has selected the official provider bank of financial services in Tianjin city free trade port zone
TDB’s representatives has attended the “Tianjin-Mongolian IV summit”. During the summit TDB has distinguished to be the official provider of financial services for the Mongolian companies in Dong Jiang Free Trade Port Zone of Tianjin. From Chinese side, Shanghai Pudong Development Bank will cooperate with TDB and parties signed a MOU of cooperation with the Tianjin Free Trade Port Zone Regulatory Commission and Ulaanbaatar Representative Office in Tianjin.
In order to support Mongolian coal mining companies and provide them various type of the financial services, TDB also signed a cooperation agreement with "Tianjin City Coal Industry Association” and Shanghai Pudong Development Bank.
The involvement in this summit, thus enabled TDB to establish correspondent banking relationship with Shanghai Pudong Development Bank Co., Ltd and to strengthen its activities with China in order to increase foreign trade finance as well as facilitating international payment settlements.
Together Towards Prosperity
TDB signed an agreement with “Center for overseas employment” LCC
Since 2009, TDB in cooperation with HANA bank of Korea and PayOne company successfully launched PayEasy money transfer service. In order to expand the service, on 28 May 2010, TDB representatives signed an agreement with “Center for overseas employment” LCC to provide comprehensive banking services, including savings, international paymenst and money transfers to the overseas workers employed by the center.
The reason that both parties have chosen the PayEasy money transfer service is because of its many advantages: fast, secure and easy.
Hana Bank is one of the leading banking companies in South Korea and PayOne company is well known, most successful provider of reliable money transfer services all over the World.
As a result of signing this agreement, many Mongolian workers in Korea can send their money to Mongolia in fast, secure and convenient way by choosing 4 types of transfers: via ATM, via mobile phone, via internet and by money order.
TDB to help Ulaanbaatar city to build bus stops with 1 billion tugruks
On the occasion of its 20th anniversary, TDB pledged a MNT 1 billion (USD 725 thousands) donation to the Ulaanbaatar City Administration to help build a brand new 100 bus stops. The agreement is signed between the CEO of TDB, Mr B.Medree and General Manager of the City, Mr Ch.Bat on the 17 May 2010, and the bus stops will be made within 12 months in the conformity of international standards with lightning system, bus route indication map and adequate garbage containers.
The last year TDB build two bus stops to Ulaanbaatar City on its 370th anniversary.
As the oldest and biggest bank of Mongolia, TDB operates today with 29 branches and settlement centers, offering over 60 types of highly standard product and services to our customers.
TDB implements integrated card payment system in Mongolia
Since last year in cooperation with BOM, Trade and Development Bank (TDB) started implementation of integrated card payment system in Mongolia. As a result, TDB signed a “Memorandum of Understanding” with BOM and Khaan bank to start taking card payments of participant banks through the integrated payment system from 16th June’ 2010.
As soon as launches the system it will be possible to make card payments of both parties and their agent banks such as Capital, Ulaanbaatar City bank and Saving’s bank on POS terminals of each others. The operation will give to cardholders’ opportunity to save their time and more convenient way to use their payment cards. The cardholders can use their bank cards to make transactions not only at issuer banks, but at other banks and their card merchant organizations.
Since 1991, TDB started international card acquiring business in Mongolia jointly with local big hotels and restaurants, MIAT and Duty free stores to attract international deposit-taking through the payment cards.
TDB has always been striving to provide convenient and user friendly services to its customers. Today the bank has one of the biggest card processing systems in Mongolia and it delivers high standard and secure card services through 60 ATMs and over 1500 POS terminals.
Let’s join “VISA FIFA” journey and travel to South Africa
Trade and Development Bank of Mongolia, offers an unique opportunity for International Visa card holders, to watch FIFA 2010 /International Football championship/ the king of the sport, in South Africa and giving you chance to cheer up closely to your favorite football player.
If you want to join “VISA FIFA” journey, organized by TDB & Visa courtesy, and travel to South Africa, you need to enter the lottery from April 27th to May 20th of 2010, with following conditions:
- If you became a new international visa card holder, we will release 100% of membership fee and you will get ten lottery entry tickets.
- If you are International Visa card cardholder, you will get one lottery ticket from every purchased transaction of 20 000 tugrik in Mongolia, in abroad 30 dollars from every purchased transaction will give you one lottery ticket and new card holders get chance to raise their tickets from each purchasing transactions as well.
There will be emerge 4 couple winners among the International Visa cardholders of TDB and lucky winner’s announcement show will live broadcast through the C1 TV channel on Monday, 24th of May, 2010.
(1) 4 Category II tickets to Matches 2-48 (two tickets per match)
(2) 4-star accommodation based on double occupancy
(3) US$200 Visa Money Card
(4) Daily breakfast in program hotel
(5) Pre-match hospitality
(6) Meet & greet service upon arrival at airport
(7) All scheduled ground transportation
(8) Domestic flights to match venues (if required)
(9) Local tour option
(10) Visa FIFA-themed merchandise
(11) Visa hospitality desk at program hotel
(12) Visa event support staff
Besides to discover wonderful nature and brand new world of South Africa, Visa has created the “Go Football Experience” which will provide fans with unique behind-the-scenes access and once-in-a-lifetime experiences which include a pre-match stadium tour, a warm-up by the pitch and a half-time pitch tour.
This is your only chance to make your dream comes true. Good luck.
For details please contact: (976) 11 326289, (976) 11 331883.
Related link of TDB's International cards click here!.
TDB will increase its contribution to have value added mining products in Mongolia
Today, not only the export of crude mining products is essential to Mongolia, but also the processing of mineral resources constitutes the economic engine of the country. To maximize mining industry benefits in terms of economic growth and development, TDB in cooperation with Engineering Dobersek GmbH and Ammac Group of Germany organized a workshop on 14th April 2010 in Ulaanbaatar.
TDB in cooperation with major correspondent banks of Germany provides import financing for delivery of high capacity, environment friendly mineral processing technology and equipments to Mongolia from experienced German company Engineering Dobersek GmbH.
As the longest serving commercial bank in local market TDB has always been supporting the mining industry in Mongolia and to provide customized services to our mining companies TDB established its Mining Department in 2007. Today undoubtedly, TDB is the largest lender to the mining sector and playing a leading role in arranging facilities for many significant mining projects in the country.
During the workshop, were made speeches and presentation by Mr. O.Orkhon, First Deputy CEO of TDB, Dr. Freudenberg, Vice Counseller of the Embassy of the Federal Republic of Germanyto Mongolia and Dr. Avrachov and CEO of Engineering Dobersek GmbH and representatives of many foreign and local mining companies were invited to the workshop.
Engineering Dobersek GmbH is an experienced German company for consulting, planning, designing and commissioning of turnkey and enrichment plants and plant components in the fields of mining and metallurgy, water treatment as well as power and environmental engineering. Ammac Group is a circle of companies which is engaged in the export of machines, implements and consumables as well as in the project development. The group has its special focus on countries in East Europe, Central Asia and Africa.
Cooperation with above mentioned German companies will contribute a significant role for exporting value added mining products by introducing enrichment plants based on German high technology.
S.ORGODOL, Deputy CEO of TDB: I see challenges as opportunities not as difficulties
We interviewed Mr. S.Orgodol, Deputy CEO of Trade and Development Bank (TDB) about today’s economical and financial situation in Mongolia and the legal, regulatory environment of the banking sector.
Let me first of all ask you about your appointment as a Deputy CEO of TDB about 4 months ago. What is your impression of coming back after so many years?
Definitely I ‘m plaesed to be back because I served previously for TDB for roughly 6 years. A lot of changes going on in TDB, a lot of innovation as well as the fact it is the leading bank in a fast changing economy. But I found more things familiar.
This year marks TDB’s 20th anniversary and 20 years in the history of Mongolian banking sector is a long time. In your opinion, what significant changes have TDB brought to the financial sector of Mongolia?
With the transition to market economy, Trade and Development Bank was established in 1990 and has been operating successfully until now. In the past, TDB made a significant contribution to the Mongolian economy and became one of the leading commercial banks. During the last 20 years TDB contributed to the state budget over MNT 50 billion in the form of CIT, around MNT10 billion in forms of PIT, social and health insurance and our effort to support our customers in their business for the sake of our economic and social development.
I believe our future contribution for the Mongolian economy will be even greater. The main reason that TDB became a leader in the banking sector is a result of our successful and innovating introduction of new financial products and services, implementation of international practices and information technology in the domestic financial market; as well as the ability to demonstrate stable growth, success, leadership, and productive performance.
Could you please tell us about yourself and your educational background? We know that you have worked for well known international organizations.
I went to the National University of Mongolia (NUM) where I got a bachelors in law in 1992. I went on further to obtain a bachelors in economics at the Economic College of Colorado in 2002 and a masters in international Banking and financial law at the Boston University of Massachusetts in 2003. Now I am doing Ph. D research on the legal environment for financial intermediation to get a Doctoral Degree from NUM. Since, both my research topic and my current job match perfectly, I plan to complete my research within planned time horizon After my studies in USA, I worked for World Bank (WB) and International Finance Corporation (IFC) from 2004 to 2008. Those World Bank Group institutions have a clear goal to create a world free from poverty and accelerate the development of less developed countries. I treasure my time spent as a full time staff with such prestigious institutions with not only affluent financial and human resources but also a highly regard as a knowledge bank as well. During my time at these institutions I tried to gain knowledge and work expereince and contribute by efficiently implementing projects funded by those institutions.
During my time at WB I was in charge USD 100 mln. investment projects USD 10 mln. advisory and technical assistance projects in infrastructure sectors. I also worked on USD 60 mln. investment projects from IFC to Mongolian entities with my colleagues.
Why did you decide to serve Mongolian banking sector again?
In 2008, my second two-year contract was reaching its end, which allow me to have an open end contract according to World Bank Group rule. At the same time some banks and companies offered me positions at the executive and Board levels, and I chose the second one. In a nutshell, I wanted to challenge myself by sharing my experiences and make a contribution to achieving main objectives of Mongolian banking sector and to try out myself especially during the economic recession and awaited fast growth period.
Aren’t you afraid of challenges during this global crisis time?
I see all these challenges as opportunities not as difficulties. Although, at this time the global recession has affected all over the world, Mongolia is about to begin the most important period of its economic history. To revitalize our economy, we are taking the required decisions to start up the big mining projects in order to increase exports, to attract foreign investments. In order to make big progress we have to overcome more challenges. In my observation it is clear that Mongolia is not well prepared to tackle many challenges and this has resulted in a lot of debating for the last few years. The topics related to the mining, processing and other value add technology plus infrastructure prevail among other issues.
The Mongolian financial sector shares the same level of challenges with other sectors of the country. If we look at the financial sector it is obvious to see its imbalanced structure, dominated by the Mongolian banking sector, which comprises roughly 90 percent of the sector assets. We don’t have yet well developed equity and debt securities markets and properly developed related financial infrastructures such as insurance and pension, trust and investment funds, trust funding and credit rating system and some others. Ratio of total assets of the financial sector comparing GDP is 4-5 times below the international average, which shows what challenges we are facing. Having a total assets of MNT 4.3 trillion in the banking sector, it is impossible to serve the economy which will grow 2-4 times in 5-10 years coming.
What is the next step to take then? What solutions are there?
If we can identify problems, solutions will be found. Unfortunately, sometimes we are not good at identifying problems. Financial sector has its own advantage which mainly related to fast and easy flow of financial capital, managerial skill, regardless of boundaries and other barriers compared to other sectors. On the one hand it is easier to channel the funding flow, but on the other having permanent, proper regulation, controlling mechanism could be an even greater challenge than the other sectors. In broader terms the financial sector contains many sub sectors; therefore, it is hard to find one proper measure to solve all those issues. Hence, in every sector, appropriate policies and decisive actions should be taken. In my opinion, however, one common requirement and direction that aims to improve every sub sector and increase efficiency of the financial sector must apply in all circumstances. Personally, I think we should aim to become one of the regional financial centers supported by the development of natural resources and suitable location of Mongolia, linking 2 larger markets, like Hong Kong and Singapore took the advantage of their favorable geographic location. Since you asked how, let me tell you one idea how. Mongolia annually extracts and exports copper, gold, zinc, coal, crude oil and iron ore worth around USD2 billion annually. Needless to say, the volume of exports will grow tremendously in the next few years. Due to undeveloped, less transparent trading and price setting systems, commodity prices are still seen as inaccurate or mysteriously set. Among politicians and the public there is no confidence of getting a fair share of revenue from entities that extract natural resources, trade with partners with periodic price that seems below world average and pay less tax without any transparency. Instead if the prices were set transparent by auction at the mercantile exchange; extractors, especially shareholders, will satisfy with highest possible price, pay taxes according their profit gain without any contradiction, moreover, giving satisfaction to public and in return will bring a social license from communities and will ensure political and social stability. Noticeably, only a few people are gaining by this undeveloped, less transparent system. However, if we apply the requirement and directions that I am implying, those few people will still gain; therefore political inspiration, new insight and motivation will be needed. Following the good examples from world renowned mercantile exchanges such as NYMEX, CMEX, HKMEX; I also initiated the idea of having Mongolian Mercantile Exchange (MOMEX) and completed some research for this project. Unfortunately, due to inadequate legal environment implementation process stopped.
Earlier, you mentioned the global recession, where do you think we are in this crisis period in Mongolia?
There have been long conversations about crisis, but let me tell you about what is actual crisis with facts and numbers. I think it would be easier if we discuss what happened in global scale and separately to Mongolia.
Global financial sectors total assets increased by 100%, in other words, doubled during 1900-1980. Soon after, total asset increased by 200% during 1980-2007 and four times more than world’s overall GDP. Thanks to peaceful period in worldwide followed after the cold war end, world took opportunity to make a great step in economy, society, culture, technology, and living standard. For this sudden development financial backing is essential. Many countries seek dynamic economic growth, so they misapplied financial leverages with excessive apparent growth; instead of actual growth, some derived sources have been applied to finance not only manufacturers, service provider, trader, and even to consumption that exceeded possible capacity. Lenders considered mortgage as a safe loan with good collateral and loan holders and buyers considered real estate as risk free property because its value constantly increases. Hereupon emergence of factitious demand and price boost started; price of house doubled during 2000-2007 in US. Price boost bubble drove buyers to make false judgment and use financial leverages. This trend was almost same with other sectors such as automobile, consumption products. It should be observable that consequences of those derived sources, risk of lending more than actual demand of loan, and false assumption on loan-holder financial capacity.
We are calling those consequences as a price we have to pay for our mistakes, briefly a crisis, but there was not any war, natural disaster that wiped away our capital and wealth, just a change in value has occurred. Global housing sector assets shrank by $3,4 trillion in 2008 from USD90 trillion worth before the crisis and global financial sector’s total asset also fell down from USD192 trillion to USD178 trillion. We remember stock exchange index fell down dramatically in short time, and resulted in huge losses for shareholders.
Likewise, many symptoms occurred such as our accustomed funding surplus shifted into shortages, foreign and domestic investment significantly declined, decrease in consumption weakened liquidity of assets, decline in capital resource and asset flow, surplus of goods, and deflation etc. Governments have done some arrangements to stimulate consumption and promote job creation and save their sinking economy against the crisis. Post-crisis, financial sector regime and regulations will be very different from pre-crisis condition therefore same thing applies in Mongolia.
So, how global crisis did affect then Mongolia?
In the case of Mongolia, it hit us harder than it was supposed to be because of mistakes we made. Global crisis hit us indirectly and could be gentler than other countries, for couple of reasons, such as Mongolian financial sector assets, securities are not directly dependent on any global stock exchange indices and did not have any derivative markets domestically. However, global crisis caused some recession in our economy and finance; for instance, Mongolia’s main exporting product copper price declined, contrary, price of main importing products like petroleum, wheat price increased. Those kinds of external forces as well as internal factors affected Mongolia’s economic recession. Particularly, improper distribution of the government revenue, essentially composed by mining taxes, trade imbalance occurred due to increase in consumer finance; inflation reached up to 30%; and pegged exchange rate for a long time. As government revenue declined, as a result from commodity price downturn, budget deficit occurred and left no other way than to spend all of our monetary reserve in short time which once reached $1 billion, and we lost control over exchange rate which in turn caused tugrug depreciation by 20-25%. We can make mistakes, but we cannot repeat same mistakes again. I do not agree with our authorities and government officials who claim they can make mistakes because our political system shifted only 20 years ago. It influences a public mindset or social permission and to let them behave irresponsibly and at the end tend to forgive them when they make a mistake.
What really differentiates Mongolia from the world in this global crisis, it is the capacity of Mongolia to recover from it. Economy of exporting commodities like gold, copper, coal, uranium, and crude oil is attracting tens of billions of dollars of foreign investments and Mongolia has great future to become a high income, low population economy. Infrastructure, community, supplies, service networks are plenty enough to supply workplaces for our population and business opportunities are still pending. Despite of international stock exchange’s index slowly increasing; stock exchanges associated with Mongolia, registered and unregistered firms are actively raising their capital to invest in Mongolia. For example, several corporations like “Ivanhoe Mines”, “South Gobi Sand”, “Mongolian Energy Corporation” in Khushuut coal mine and “Bold tumur Eruu gol” already begin to bring on investments from the international financial market.
However the World economy is getting stable, but many countries keep talking about the sensitiveness of economic recovery. What is your opinion about it?
How to get over the recession and keep situation stable depends on the ability of measuring the situations unmistakably and continuously making progress or correction. If we don’t manage and control properly the economy, the crises are there like a shadow that follows us. Every country’s vision is to have proper bodies to regulate efficiently financial market, economy, banking and stock exchange market. Furthermore I would like to underline the importance of having permanent and consistent economic regulation policy. Otherwise, if those special purpose bodies start losing their professionalism and trying to please elected politicians, then they naturally tend to overexpose themselves in the period of economic recessions.
As you mentioned before, you got a law degree from USA. Please share your opinion on legal environment of Mongolian banking sector with us.
A bank’s management, organization, activities and legal environment generally contains following elements: daily and specific legal activities, several legal acts which coordinate special cases and other legislations. Among them Banking Law plays the major role. Banking Law was revised and approved in February 2010 and became effective March this year. There were massive needs to update Banking Law. Any law and legislations must be based on balance. Otherwise, if it can’t find the balance it’s impossible to be permanent.
For instance, today there are enormous needs of capital and investments in Mongolian banking sector. Unfortunately, the new Banking law was developed based on the emotions and frustrations caused by the recent collapse of two banks instead of well established research and principles. One clear example is the law turned to limit the opportunities of inbound investments to the banking sector, and to limit the possibilities of investments’ liquidity. Consequently if it is not liquid enough it’s hard to be considered as a valuable investment. There are many deficient regulations and which negatively affect the development of the banking sector. In 2007 a group of lawyers established an NGO named Association of Mongolian Banking Lawyers. Recently and my companions and I joined this NGO and plan to engage in the activities of this NGO. On behalf of this organization we will give our requirements and suggestion to make developments and changes for Mongolian banking sector.
Do you think current legal environment of banking sector is inadequate?
Yes. Generally legal environments are obliged to have direct connection to the social developments. As a new Banking law it has many disadvantages such as not meeting the requirement of its need, plus there are several conflicts among other major legal acts like the constitution, civil law and the law of administrative responsibilities.
Thank you for your interview.
TDB signed an agreement with ADB for cooperating trade finance
On 24 March 2010, TDB representatives signed "Issuing Bank Agreement" with ADB under Trade Finance Facilitation Program. According to this agreement, ADB has approved clean trade finance line for TDB which it allows letter of credit, guarantee issued by customers will be confirmed and refinanced by top rated foreign banks.
The payment risk is the main issue for the companies and firms in most developing member countries and they have difficulty to get the financing for importing or exporting the products and services. As a result of signing this agreement, many Mongolian foreign trade companies are protected from payment risks as well as supported by foreign banks. Also, TDB's correspondent relationship is increased by many foreign banks which signed confirming bank agreement with ADB.
The ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth and regional integration. Also, ADB helps to local banks for increasing their trade finance volume and allows their customers to cooperate international trading companies and firms around the world.
TDB sees bright future for the Mongolian economy
The Mongol Messenger Editor in chief, Indra Borkhondoin interviewed Trade and Development Bank President, Randolph S. Koppa, to see how the Bank has changed in the last 20 years and it’s plans for the future.
MM: The Trade Development Bank (TDB) celebrates its 20th anniversary this year. What are the biggest changes in the banking sector in Mongolia in this 20-year period?
RK: Through all the change of the past twenty years, TDB has remained as the stable, leading bank. Meanwhile, banking has been changing to becoming more client focused, with more services and products being offered.
As Mongolia has become more recognized and important in the international community, TDB has played a leading role as the country’s international financial gateway. TDB has been the leader in handling the country’s trade and investment flows. TDB has relations with over 80 major international financial institutions. TDB has been the first commercial bank to be rated by Moody’s and the first Mongolian company to raise funds on the international public debt market.
MM: How has the TDB responded to these changes in the way it provides its services and in the types of services?
RK: The key has been to provide basic services well. This has required investment in technology and staff training to ensure quality service. At the same time, new products to meet client needs have been continuously introduced. Examples include electronic banking services and high quality credit cards, specialized loan products such as mortgages, SME project loans, and syndications.
MM: How has the TDB emerged from the global financial crisis at a local level? What are the main challenges facing the Mongolian economy in 2010 and how will your bank cope with them?
RK: TDB has passed through the global and local economic downturn with solid financial indicators. Earnings for 2009 were a very solid MNT 15 billion, down only slightly from the previous year. Although the level of non performing loans rose during last year, since November that level has come down. The bank successfully repaid its USD 75 million international bond issue. Regarding the second question, the Mongolian economy in 2010 should be quite promising with the recent development in the mining sector. Still, we anticipate challenges. TDB, with its rigorous risk management structure, continuously monitors changing economic and market conditions and will adjust its business activities accordingly.
MM: What is the trend in non-performing loans? The Bank was Mongolia's largest corporate lender with about 30% of the corporate lending market share by the end of 2009. Does it hold this status in 2010 and has there been any growth in corporate lending in 2010?
RK: I just saw some numbers; I think it was for January or February. Numbers were still in percentage terms and still relatively high in the system. However they included the non-performing loans (NPL) from the two banks that have been taken under control, Anod Bank loans and Zoos Bank loans. The level has stayed high although I think it's starting to come down within the overall sector. For the TDB, our NPL have come down about two percentage points in the last three months. I think we will see that trend hopefully stabilizing or continuing to go down. Our NPL are about five percent, they reached their peak at seven percent last fall. We think the trend is down within the system as well.
The bank continues to lead in corporate lending. After modest growth the first couple of months of the year, there is a now stronger loan demand as we enter the Spring season, and the bank is responding to the needs of its clients.
MM: The Bank offers a full range of services for corporations, small to medium businesses, retailers and the public. Which service demands the greatest commitment from the Bank and why?
RK: We are committed to all our clients but - our target and main market is the corporate sector. That means loans, foreign exchange, trade finance, services for employees of large corporations and obviously card products. So when we focus on the corporate sector this requires a lot of different services which are also appropriate and serve our SME and retail market sector clients.
MM: Has there been any change in the Bank's services with the passing of the Mining Investment Agreement, in particular with foreign investment?
RK: TDB has always been focused on serving the international financial and investment community. Since the signing of the OT agreement, we have seen increased interest from abroad and the bank is actively working with current and potential clients to provide advice and service to new investors and to work with firms in expanding their local operations to meet the increased demand as the economy develops in response.
MM: What do you think about the climate of foreign investment in Mongolia?
RK: The investment climate is favorable. The economy has stabilized, exports and foreign exchange reserves are up, the currency has been stable, and inflation has been under control. The mining sector expansion and the new mining projects promise a significant GDP growth in the next few years. New laws are being passed to address many needs in the business and financial sectors, and actions are being taken to improve the functioning of the banking sector and the stock exchange.
MM: The Mongolia-China Investment Forum is in Beijing on March 25, 2010. The TDB is going to participate at this event, what are you expecting?
RK: This event is aimed at investors or potential investors into Mongolia and the one in Beijing will be the first held in China. Last year, one was held in Hong Kong which aimed at Asian investors broadly. The forum enables Mongolia to get better known on the international scene and to potential investors. We would hope our presence will help highlight opportunities for various kinds of investments in Mongolia, not just in mining, but in other sectors. This is a good event for the TDB because it gives us a chance to meet with particular investors and may lead to establishing business relationships with them and assisting them in working with companies in Mongolia.
MM: The First economic Forum was held in February in Ulaanbaatar. What do you think about the results from this Forum?
RK: This was an important event, particularly for the Mongolians as it allowed the governmental, business and social sectors the chance to debate and discuss the priorities and issues in developing the mining sector, infrastructure, and the capital markets and in addressing the related social and environmental issues. The follow up is then to take the consensus and ideas and work on either legislation or to set up organizations to address these needs. The key will be to maintain involvement of all the stakeholders in the process.
MM: What do you see in the future for the TDB in terms of growth in customer services and its position in Mongolia, compared to the other Mongolian banks?
RK: We want to maintain focus and position on dealing and serving corporate customers. At the same time we are a major provider of retail services through our card products, through our ATMs and branch networks. So we will continue our dedication to those sectors. We think that the growth in the upper levels of the retail sector and our future success, depend on serving these clients well. We expect that corporations will grow and SME's will become corporate as the economy is expected to grow rapidly in the next few years.
In particular, with increased exports of coal and copper from Oyu Tolgoi, all estimates, the International Monetary Fund (IMF) and others, expect the country’s GDP will double in five years - this means that bank growth will be more than double because the banks have not yet realized their full role in the economy. We’ll see significant growth in TDB, which will continue to be one of the leaders. We will have a few other banks, which will grow as well, so the whole sector will grow. There will be challenges. There will be periods of inflation, no doubt there will be cyclical issues, which will present challenges in continuing profitability and obtaining the increase in our capital base to meet the growth. We see the future as very positive and we eagerly look forward. Our goal is to maintain a leading position in corporate banking and international financial services. We will be trying to offer more products and services that the amendments to the banking law soon will allow so banks can engage in more activities such as brokerage and leasing. We will see how these are developing, but we expect more of these investment banking type services and new products to come online. We expect a strong position in the market in the future.
Trade Development Bank has given 50 million tugrugs to National Emergency Management Agency
The deadly weather extremes, known locally as the Zud, are causing massive losses of livestock and threatening the livelihoods of hundreds of thousands of Mongolians, who depend on livestock herding as their main source of income. In 28 of Jan’2010, understanding its social responsibility as an investment in the well-being of others, Mr. S.Orgodol, Deputy CEO of Trade and Development Bank of Mongolia (TDB) presented MNT 50 million aids from the bank and its employees to Mr. T.Badral, Deputy Director of National Emergency Management Agency (NEMA), to help rural families during this weather emergency.
As the oldest and biggest bank of Mongolia, TDB is celebrating its 20th anniversary this year. In honor of its 20th anniversary, TDB has naturally responded for the public appeal of the Mongolian Government to support the herders.
TDB is donating an average of 100 million tugrugs per year to support the welfare of the society.
Intermediary banking charge is now free for transferring rubles to Russia through TDB
Since 1st January of 2010, Trade and Development Bank of Mongolia launched special service to individuals and corporations, having business with Russia or relatives living in Russia. Now, intermediary banking charge is free for transfer in Russian rubles to Russia from TDB through its correspondent account held by UniCredit Bank, Sberbank and Russian Agricultural Bank. Customer will only be charged our remittance fee for international money transfer.
Trade & Development bank of Mongolia cooperates with around twenty reputable bank and financial institutions in Russia, which includes the UniCredit Bank, Sberbank, and Russian Agricultural Banks, who constantly listed in top five among the Russian commercial banking sector by their total active and assets. On the occasion of its 20th anniversary, TDB will offer throughout this year other many great benefits and surprises to its customers, so stay tuned.
Trade finance and FX line successfully reinstated by ING Bank
On 17 November 2009, the meeting with ING delegates was held successfully at TDB Head Office.
During the meeting, ING Bank delegates officially informed that the clean trade finance line of EUR 5 million and FX line of EUR 5 million were respectively reinstated for TDB.
TDB enjoys valued relationship with ING Bank in a variety of business fields for many years.
TDB’s international activities and correspondent banking relationship network have been expanding continuously.
TDB was awarded by Commerzbank with “Excellent Quality of Straight Through Processing Award 2008”
TDB has always been Mongolia’s international gateway to the World. In order to provide international payments fast and effectivly, TDB established correspondent relations with over 100 banks in 14 currencies. One of the biggest bank of Germany Commerzbank AG awarded the Bank with “Excellent Quality of Straight Through Processing Award 2008”.
The award was honored for the fast and reliable international transactions and payments by Euro with excellent quality.
TDB continues its strong and dominant role in the international payments and transfers in Mongolia.
Together towards prosperity
TDB revolutionise its debit card's daily withdraw limit
We hereby kindly notify you that TDB has set new daily limits for your Visa and MasterCards in order to meet with international standards of debit card products and to prevent any card related risks.
If you wish to increase your daily limit, please make your request in person at any of our branches.
Card Management Department
For further enquiry, please contact us at:
+ 976-11-331883, + 976-11-326289
First time in Mongolia TDB has implemented automated trade financing system - GRAFT
The Trade and Development Bank is eternity aiming for initiate international highly developed modern technology to Mongolian banking sector.
Therefore, in cooperation with Grape City Company, TDB has implemented brand new system of trade financing GRAFT. The system has various advantages to the bank’s functional factors, which assist to automate the performance of Letter of Credit, Bank guarantee, basic and medium level of Collection activities, Auditing and Back office accounting processes.
The TDB is first ever implementer of Graft system and it also launched first time in Mongolia the Treasury system of asset management and its accounting in beginning of 2009.
The main advantage of the GRAFT system is that it’s fully integrated with Core banking system and provides chance to complete trade investment payment and transfers speedily. Graft system is an operational tool to gather the highly organized information compound and provides automation of to ensure that transactions and processes are executed correctly and on time.
Besides the system will help to improve recording process of all types of loan, Letter of Credit, and bank guarantees, and also decreases risk of banking whole operations. So it’s the new page of technological development in Mongolian banking sectors.
Implementation of the Graft system makes its important contribution not only to TDB, but also to Mongolian banking sector development.
Together towards prosperity
New opportunities to raise capital
By the initiation of the one of the world’s leading asset management company- Bank of New York Mellon, and the London Stock Exchange together with Trade and Development Bank of Mongolia, Golomt Bank, Khan Bank, and Tengri Securities LLC are organizing the international seminar - “Raising capital – New Opportunities for Mongolian Companies” on 14th October, 2009, at Conference Hall, Kempinski Khan Palace Hotel.
The purpose of the seminar is to provide Mongolian companies with a broad range of information about raising capital in both domestic and international markets and stocks issuing, it will also cover the issues on corporate governance topic, which is becoming an important issue in recent years.
This seminar will guide you with more detailed and up-to-date information about the most important matters on obtaining of necessary financial resources from domestic and international capital markets and efficiently implement large-scale projects in mining, tourism sectors and infrastructure which require great deal of investment.
Meanwhile, this event draws a lot of attention from public and business entities as the group of professionals and experts from Bank of New York Mellon, one of the world’s leading and the oldest bank of New York with over 225 years of history, and the London Stock Exchange, which embraces over 400 global investment funds, asset management and securities companies under its operation, are going to share their experience and expertise with us to grab the new opportunities in capital markets.
The seminar is free of charge and the new opportunities are open for you!
Interested companies should contact to email@example.com or phone to 70130695, 88116290 for registration and other inquiries.
Randolph Koppa, President of TDB: We could say the economy is still not well, and although there are positive signs
Randolph Koppa, President of TDB
Question: What do you think of the economic situation of Mongolia since the beginning of the world financial crisis started to impact Mongolia in 2008? Is the Mongolian economy over the worst yet?
Answer: The worst is not over although there are some aspects which may be showing improvement. Business activity is still running at a level of 15% or more behind the levels of late 2007 and early 2008. From a positive side, this means that imports have been at a lower level than in 2008, easing the pressure on the country’s balance of payments.
Inflation is down. The year on year increase could be below 10% in 2009 compared to 22% in 2008. Unfortunately, the tight money policies of 2008 and the interest policy of 2009 designed to protect the tugrug value against the dollar has meant that interest rates have remained high. There has been a notable increase in bank deposits in the second quarter so bank liquidity has improved. However, the increase in past due and non performing loans means banks will be cautious in expanding lending operations and borrowing rates will likely remain high.
The outlook for the export revenues has brightened a bit as copper prices have moved back up over $6,000 a ton. During the first half of 2009 however, copper revenues were $65 million below the previous year, so there will have to be a big increase in exports to meet get close to last year’s export revenues. Fortunately, China still seems to be buying copper.
Likewise, the gold price remains high and the windfall profit tax level has been adjusted to promote more gold extraction and sale. The Government arranged some international funding which has been made available to the banks to help the mining companies extract gold during the summer and autumn to increase the country’s exports. Unfortunately, the suspension of Boroo Gold’s operations for three months will curtail the full potential benefit for this year’s export revenues.
China is importing more coking coal, and Mongolian mines are extracting more for sale. Total coal production is up 11% this year so far compared to last; however, export prices are lower.
Question: You said imports are down. Does this not mean a potential shortage of key commodities?
Answer: Not necessarily. The average price for imported petroleum products is down from the previous year, but volumes are not. At the same time, Mongolia continues to export increased amount of crude petroleum to China, which offsets much of the impact of petroleum import costs. As for grain and key foodstuffs, the number of hectares in Mongolia planted in cereal grains is up 31 percent from last year. So far, judging from the good amount of rain early this summer, the harvest could be a good one which means the country gets closer to the goal of grain independence.
As for other key foodstuffs and consumer products, there has been a noticeable shift in buying habits to lower priced options on everyday items. Large purchases, such as automobiles are more and more deferred. Thus, although imports are down, there should not be shortages of necessary. It is more of a belt tightening to get through the tougher times. This has been happening around the world.
Question: What about the construction sector?
Answer: Times are indeed difficult for many developers and builders. The increase materials costs and the tight money of the past year have resulted in delays in completing many projects. An estimated 400 works are in various stages of construction representing about 30,000 residential units valued at potentially MNT 1.5 trillion. Of course, this is not too great a number considering the need for at least 100,000 units in Ulaanbaatar alone in the next few years. The problem is that there a around 10,000 finished or nearly finished units which need to be sold this season to get operations back to a more normal state. The tight money in the banking sector has made it difficult for banks to lend more to construction projects and to make mortgage loans to eligible buyers. While some progress is being made in finishing projects and banks are making some mortgage loans related to those projects they finance, there is still a need for more funding.
One initiative to deal with this is the recent agreement the Bank of Mongolia has made with MIK ( Mongolian Mortgage Corporation) to support the issuance of MIK bonds up to MNT 25 billion to buy mortgages from the banks and enable them to redeploy those funds to new mortgage loans. Up to 20% of the pent up urgent financing need could be met this way. MIK is awaiting approval from the FRC in the next couple of weeks to be able to proceed. If successful, this could prompt the start of a real domestic debt market leading to further such bond issues next year to get housing finance activity on a proper track.
Question: Meanwhile, haven’t these construction loans put the banks in trouble?
Answer: It is true that construction loans have become a bigger portion of the non performing bank loans, which have increased to over 11% of total loans, with a further 7% in past due loans. However, many of the problem loans are not related to construction activity, but to a broad variety a activities, including mining, herding, and domestic trade. Some poor lending practices of the past few years of easy money and strong GDP growth are also coming to light. The World Bank has been conferring with the Bank of Mongolia on ways to support the banking sector, both with capital and funding to help the sector get through the present difficult times. It is likely that some of the long awaited consolidation in the sector will occur. For the time being, of course, the government’s guarantee of deposits in banks remains in effect.
The supports of the World Bank and the IMF have been an important element in stabilizing Mongolia’s currency and in supporting the domestic budget deficit. Their role will continue to be needed to get the economy and the banks through the current economic troubles.
Question: How is TDB doing these past months?
Answer: With all the issues of tight money and poor performance in much of the economy, TDB has had to be very selective in its lending activity and to maintain liquidity and loan portfolio quality. There has been an increase in non performing loans as well as past due loans, although our levels are, so far, manageable. TDB is continuing to work with our 360 corporate as well as numerous SME and small business clients to help them continue to finance their operations. We continue to have over 25% of the loans to the corporate sector and are conscious of our role and responsibility as the country’s main corporate bank. We also maintain a strong presence in the foreign exchange market as well as the handling of remittances and trade finance business.
At the end of June, the bank’s total assets reached MNT 725 billion and earnings after tax were MNT 11 billion. The bank’s capital adequacy and liquidity positions have been maintained on a high level. There has been an increase in deposits and the bank is selectively increasing its lending activities. At the same time, we will maintain strong liquidity and work hard to monitor the loan portfolio. Maintaining strong earnings, liquidity and good credit quality are key to help us to getting through the current times.
Question: What should the Government be doing?
Answer: First, some good actions were made which need to be continued. First, the government committed to controlling the budget deficit and limiting foreign borrowings as conditions for the IMF and World Bank funding. This discipline must be maintained. Second, some assistance to the financial sector has been made in the form of some additional funding for specific sectors. I already mentioned the need for some further measure to strengthen the banking sector.
One important action would be to finally conclude an agreement on the major mining project such as Oyu Tolgoi. I do not mean to comment on which elements of the agreement are good for Mongolia and which are not. It is, of course, important to get the right agreement with the right partner. Although the international investment and mining community continues to be frustrated with the delays, that is not the important point now. From my perspective as a foreign banker working for several years in Mongolia, and as someone asked to assess the current economic situation, I can say that as soon as an agreement would be reached, even though the ore would not be exported for a few years, there will be an immediate significant uptick in the local economy. There will begin the spending of money here on various preparation activities for the mine and the infrastructure to support it. This spending will trickle quickly into the local banks and help improve liquidity and increase lending capacity. Overnight, a sense of optimism will overtake the current mood of caution, and investment decisions, locally and abroad, will be made, all of which will quickly impact this still small and fragile economy.
Question: Any final words?
Answer: In conclusion we could say the economy is still not well, and although there are positive signs, things may take a while to get good again. There are challenges in the mining, construction, agricultural, trade and financial sectors. Support of the international community is available and is so far helping. An early agreement on OT would help, but in the meantime, it seems we should be able to muddle through.
“MoneyGram” to establish its network server division centre at the TDB
Trade and Development Bank (TDB) has been partnering with the global money transfer leader “MoneyGram International” since 2000.
On June 24th “MoneyGram” representatives Nicholas Ware, senior POS manager and Andy Liu, agent support manager, held a meeting with the management team of TDB and organized a seminar for the IT Department (ITD) of the Bank. The seminar took place on 24th and 25th of June and the professionals from the ITD completed the set up of the project’s technical solution by developing their own softwares and succeeded to connect with the “Moneygram” main system by installing the “Moneygram” system server at the TDB.
Two day seminar organized by “MoneyGram” also covered developing and improving the current network in Mongolia, and how to improve the coverage of “MoneyGram” throughout the country. The following professionals participated from TDB in the seminar and completed the set up process: E.Altangerel (IT), N.Hulan (IT), T. Bat-Erdene (IT), G.Enhbat (IT), K.Munkhbat (CSU), Kh.Ankhsuren (RBD).
TDB employees received honorary awards
According to the decree of the President of Mongolia, Mr. L.Purevdorj, President of Mongol Bank has handed out honorable awards to the best employees of TDB, leading Mongolian bank.
D.Yanjmaa, Director of Financial Accounting and Control Department, D.Oyuntsetseg, Director of Urguu Branch and S.Sugar, retired, former director of Darkhan Branch were given awards: order of the “Polar star”, “Honorable Labour Medal” and order of the “Labour Red Banner” respectively, for their contribution to the development of Mongolian banking sector and their efforts and successes in banking and finance.
Congratulations from TDB colleagues and wish them further success and happiness in their ahead life.
First time in Mongolia TDB has implemented Treasury and Asset management system
In cooperation with GrapeCity company TDB has implemented brand new system of asset management and its accounting. A short interview was taken from J.Erdenechimeg, Head of Treasury and Trading Back Office Unit about major advantages of new system.
J.Erdenechimeg, Head of Treasury and Trading Back Office Unit, TDB
Congratulations, you have implemented a brand new Treasury system first time in Mongolia. Would you explain what main purpose of this system is? What is its usage?
The Treasury system is a scalable solution that accurately analyses the risk exposure and performance of trading for any portfolio, any securities, any precious metals and all traded foreign currencies. The system provides automation of asset management of bank’s current accounts in foreign banks, to ensure that transactions and processes are executed correctly and on time.
It is an operational tool to increase the efficiency of treasury and asset management processes and its back office accounting. Also the main advantage of the system is that it’s fully integrated with Core banking system and General ledger of the Bank.
How long did it take to implement the whole system?
In order to deliver more efficient and non-risk trading and accounting services to our customers and to perform fast and reliable trading with local and foreign banks, the Bank established Treasury and Trading Back Office Unit in 2000. First time in 2002 we realized that we need a new system and since then we have worked on it. The new system has implemented due to many researches, testing and hard working of our colleagues.
I think that implementation of the treasury system makes its important contribution not only to TDB, but also to Mongolian banking sector development.
What operations are automated through the treasury system? Would you explain some of major advantages?
Sure. The system has many advantages, which automate several banking operations. Besides the treasury system allows managing banking assets, also decreases risks of accounting operations, gives instant surveys of bank’s present financial information flow and currency positions, streamlines money market, foreign exchange and equity deals as well as deals in all traded currencies, increases internal control of operations and gives a better general outlook, healthier prognoses, and greater possibilities of on time recording of asset management income and expenditure, automation of trading databases and banking operations, and at last it performs risk analysis in real-time, and makes the financial risks of trading operations clearly visible.
How long have you been using the new system, since the implementation? What is the result and what is your satisfaction?
Since the implementation, 2 months already have passed. The system fully automated the manual spreadsheet based operations, which were slow and error prone. As I told before the system provides many advantages such as allowing faster and efficient transactions, better reporting system and providing more sophistication in cash management process. Of course, the system is brand new, so there were certain mistakes we had to learn on it. Further we will be working on improving of the system to meet our customers’ needs and deliver international standard products and services.
What is the next technology TDB is planning to implement in the near future?
TDB is planning to implement many international standard banking technologies in the near future. For example, the bank is working to implement a new trade finance system and also planning to implement Visa, MasterCard EMV chip card technology.
Thank you and Best wishes to you.
TDB’s nominated as a Reliable Tax Payer
The Reliabile Tax Payer award honors TDB by National Taxation Office of Mongolia for successfull tax payment and its contribution to the Government budget according to Mongolian Taxation law.
As the leading bank in the Mongolian financial market, TDB has been working fairly with MTA.
The public confidence in the banking sector is still strong
Randolph Koppa, President of TDB
Trade and Development Bank of Mongolia is the one of the Lead Sponsors in Mongolia-Asia investment conference in Hong Kong this march 2009. Would you please explain the importance of the conference to our reader?
The conference draws on international experience in leading independent debates with high level decision-makers. It is a platform for outlining investment and financial climates of Mongolia, in an environment conducive to interacting with key stakeholders including top officials, investors, the media and financiers. TDB has played a principal role in the conference since 2006 through being a Lead Sponsor, hosting an informative workshop and participating actively in the debates. TDB as the leader in the corporate and investment banking market in Mongolia, knows well the local economic and financial situation. We think that it is important to share knowledge and promote a spirit of partnership with government and investors for the welfare of the Mongolian economy. The event helps one understand and identify where the best opportunities are in Mongolia and how best to access these opportunities. It gives TDB a great opportunity to connect with many investors who are interested in doing business in Mongolia. In that way the conference itself is very important for contributing to the country’s economy and public and private sector development.
Foreign direct investment grew each year since 2001. Do you think that this trend will continue in the next years? As an expatriate in Mongolia, what major attractiveness has Mongolia?
I’ve been working in Mongolia since 2004 and have worked in 12 different countries for almost 30 of the last 43 years. I have very much enjoyed working in Mongolia and participating in the rapid development of the financial sector and the growth of TDB. Mongolia has a comparatively stable political situation and a strategic location between the vast emerging markets of Russia and China. Mongolia also disposes extensive and largely untapped natural resources. Statistics shows that foreign direct investments in Mongolia are growing in the last years, mainly in the mining. 67% of foreign direct investment flow into mining and 73.4% of total exports are mineral products. Despite the world financial crises, the Tavan Tolgoi, Oyu Tolgoi, Tumurtei, Asgat, Dornod, and Gurvanbulag-Mardai projects will further stimulate foreign investment in Mongolia.
How do you expect the banking sector to evolve in the coming years? How would you assess the overall outlook of Mongolia's banking system in this financial crisis?
Fortunately, Mongolia’s banking system has not been very integrated with the international capital markets. Mongolian banks are not dependent on funding from the international interbank market. Moreover, Mongolian banks have not invested in the asset backed securities and collateralized debt obligations issued and distributed by investment banks. But, giving the high inflation in 2008 and the recent instability of the tugrug versus US dollars, the Bank of Mongolia tightened the money supply, and an economic slowdown is already being felt. Commodity prices are down in the international market, which means Mongolia’s export values are going down. With the slowing current economic environment of Mongolia, Mongolia’s banking system is being tested. Some recent measures by the government and the multilateral financial institutions should stabilize the country’s reserve position and provide some needed funds into the banking system. The prospect of agreements being reached soon on a couple of the mentioned mining projects will help to reinvigorate the foreign investment flow and provide both funds and stimulus for the banks and businesses.
Regarding the evolution of the banking sector, I would say the competition in the banking sector has spurred innovation and the introduction of new products, such as mobile banking. Despite the credit crunch effect, we are observing more demand for banking services and the public confidence in the banking sector is still strong.
Foreign central banks have decreased down its policy interest rates, even down to zero. But the central bank of Mongolia has recently increased it. What's your opinion about it?
As we know the Central Bank has raised the interest rate to 14 percent from 9.5 percent. Mongolian economic structure is different than other countries. So the BOM has to take its own specific action. The action was taken to stabilize the value of the MNT against foreign currencies. The BOM considers the measure will reduce the conversion of tugrug-denominated savings into US dollars, limit capital outflows from Mongolia which will restore the confidence of savers and entrepreneurs. I think that makes sense. Also I agree with that pouring more money into the market would lead to a further fall of the MNT. But sometimes we have to wait to see the results.
What's your opinion about the Government economic stimulus plan? There were questions about raising some capital in foreign debt market. Is it feasible for Mongolian government?
While the plan shows a need for MNT 1.5 trillion, the Government will not be able to fund all of this itself without going over the 6% of GDP budget deficit recently agreed with the IMF as a condition for the USD 224 million reserves support facility. This means that outside funding is needed. The international donors appear to be able to commit about USD 200 million. Anything more will have to be through commercial arrangements. Raising funds through a domestic bond issue is not feasible as it would further tighten an already tight bank credit market. Mongolia has never tapped the foreign debt market, and while it is feasible conditions would not be very favorable were that approach to be tried now, especially as the country rating is under review. Instead there are a number of bilateral discussions with major neighbors and partners such as China and Russia which will be the more likely route taken to get some funds. In this regard, we can note the USD 300 million financing from Russia aimed at the agricultural sector which was announced last week.
TDB is the only one company that successfully issued bond internationally. Any further offer will be made in the global market? Do your bank rated by any international rating agency? If yes, when was the last rating done and what was the outlook?
Ever since the first issue of USD 75 million made in early 2007, TDB has been looking to tap the international capital market for additional funds. In this regard, the Bank’s original EMTN program was increased to USD 300 million last June. Unfortunately, conditions in the international capital markets are still not attractive for issuers from emerging countries such as Mongolia. We expect that towards year end or in early 2010 the conditions will enable the Bank to proceed with another issue. As for the rating,
TDB was assigned ratings by Moody's Investors Service first time in 2007 and was rated Ba2 for foreign debt. Moody's affirmed as the same ratings last December and February this year. TDB's rating outlook remained as "stable".
What's Trade and Development Bank's loan policy like in the moment of business activities reprises? Is the Bank standing still the largest corporate lender of the economy? Do you think that this market will continue to grow?
With recent tighter money conditions in the local market, TDB has had to be selective in increasing the Bank’s total loan portfolio in order to maintain adequate liquidity. However, we are continuing to work with our corporate client’s to support them with the financing needed to continue their operations. As TDB works with over 360 of Mongolia’s major corporations and has over 25% of the corporate loans outstanding from Mongolian banks, we can say TDB is still the largest corporate lender. The corporate sector has been the Bank’s focus since its beginning and still accounts for about three quarters of the bank’s loans and net interest income. TDB has recently placed strong focus on SMEs, Mongolia’s medium sized business entities, and continues actively to provide small business loans through its branch network, such that TDB has over 18% of the total loans in the banking system. The Bank’s strong earnings record and capital base enable it to continue to attract the largest companies as clients.
In recent months as the economy has slowed, the growth of many companies has also slowed. However, looking ahead, as more mining projects are activated, and as needed infrastructure and housing projects are undertaken, the outlook for corporate, SME, and small business will get brighter and the market for financing these business will grow. Although it may not appear so from the experiences of the past few months, the disposable income of more and more Mongolians has increased significantly in the past four or five years, and their spending has been one of the main drivers of GDP growth, even beyond the contribution of the mining sector. As conditions here stabilize and the global recession eases, we can expect Mongolians spending to again stimulate the business activity here.
You are the Chairman of the Mongolian Mortgage Corporation. Since the credit crunch, how is the progress of your corporation?
Yes. I am also serving as Chairman of the Board of Mongolian Mortgage Corporation (MIK), which was established in 2006 by ten Mongolian banks and the Bank of Mongolia to develop a secondary market for residential mortgages. In the past couple of years MIK has used its own funds to purchase around MNT 3 billion of mortgages from Mongolian banks. One of the original objectives of MIK was to attract foreign investors to buy mortgage backed securities issued by MIK. However, the sub-prime loan crisis and the related problems related to asset backed securities, has made it difficult to attract such investors. Meanwhile, the German KfW bank has designated over EUR 5 million to provide MIK with technical assistance and funds to purchase mortgages from banks. It is expected those funds will be available by mid summer.
Meanwhile, the tightened money supply here has reduced banks’ ability to make new house loans. But concerning Mongolia there is still a great need for more housing, especially in Ulaanbaatar, and thus mortgage financing is essential. The banks in Mongolia need liquidity to make more mortgage loans, which are long term in nature. Therefore a secondary mortgage market is also essential. The Central Bank, the Mongolian Bankers Association and MIK, are working together to find ways to soon provide some liquidity to the banks by helping MIK purchase more existing mortgages from the banks through the issue of some securities into the local market. All parties concerned recognize the importance of helping Mongolians to own their own residences.
SUNROAD SETTLEMENT CENTER in Bayanzurkh district of Ulaanbaatar city
TDB is proud to announce the opening of the SUNROAD SETTLEMENT CENTER in Bayanzurkh district of Ulaanbaatar city, effective from March 11, 2009.
The new settlement center opening is part of TDB’s continued commitment and approach to provide outstanding banking service and convenience to our valued customers.
Tuesday – Saturday: 10:00-18:30 p.m,
Sunday and Monday: closed
Address: Sunday Plaza building, Nam Yang Ju street – 37, Bayanzurkh district, Ulaanbaatar, Mongolia.
Phone: (976-11) 453392
Fax: (976-11) 453390
TDB promotes the following offers during March and April in its new Sunroad settlement center:
- TDB gifts to individuals who open personal current, deposit or card account (only in March).
- The 6th domestic transfer will be free of charge if 5 personal domestic inter branch transfers are made within the settlement center.
- The 6th international transfer will be free of charge if 5 international transfers are made within the settlement center.
- The saving book will be free of charge to individuals who open a new saving account.
- A local Gold card or Loyalty Lady card for free to individuals who open MNT card account with at least MNT 1 million deposits.
We should roll back the Windfall tax, and increase the Gold production to overcome the economic and financial difficulties
Medree Balbar, CEO of TDB
TDB has organized the Gold Finance Conference with Bank of Mongolia. Please, share with us about issues were discussed at the conference?
Besides the financing of the gold mining industry, we have discussed many important issues such as increasing of gold production which is the most important factor to increase the Mongolian foreign currency reserves, reviewing of some legal issues related to the gold and providing the steadiness of the gold supply. On the other hand the forum was very specific, where the banking sector representatives and miners are both sat down together at the round table and had an open discussion. We really hope that the conference would make positive contribution to the Government tax regulation on the gold producing and possibility to raise a fund to finance gold mining projects. As well as the Parliament and government members, His Excellency Mr. S.Bayar, the Prime minister of Mongolia, gave a great importance to this conference organized by TDB and BoM and participated actively in the open discussion which made sufficient contribution to the confronting issues of the gold miners.
Mongolia’s economy is based on the mining sector and is vulnerable to commodity price fluctuations. The gold export plays an important role in the economy and it’s one of the major export products.
As you know gold is the world’s most precious metal and it can be convertible in cash instantly, with minimal loss of value at the international market. Because of its ability to be easily converted to cash, the most countries of the world reserve the gold as a store of value. And we think that the gold production is the most influential sector in economic growth of Mongolia.
Spring is coming soon and many industrial sectors such as gold mining, construction and agriculture will need the financing. At the time when the foreign currency reserve has decreased and the exchange rate is unstable, first thing we need to do is financing our gold miners and consequently, increase the gold production. Therefore, the Gold Finance Conference was organized jointly by TDB and BoM, to draw attention of the Government of Mongolia on the financial need of gold mining companies and how to raise these funds.
The local miners gave more importance to the taxation rate of gold and made a proposal to the Government and Mongolian policy makers, especially to eliminate the windfall tax on gold. Do you agree with this?
The main purpose of the Windfall-tax or 68% tax on mining companies was to increase government revenues during high metal prices and contribute to the Development Fund of Mongolia. As a result, we collected some capital in the Development Fund of Mongolia, but not as much as we expected. Because the amount of gold sold to the Bank of Mongolia has decreased around 40 to 60 percent since the law came into force and the state budget suffered accordingly. According to some statistics the windfall-tax law forced gold miners into smuggling and boosted the underground economy. 40 percent of the Mongolian government’s revenues come from minerals. If we eliminate the windfall tax on gold, the amount of gold purchased by the central bank and the commercial banks would increase. This could lead to a quick increase in State budget and will attract more investment opportunities to the mining industry.
What difficulties is Mongolia facing, when the amount of gold sold to the Bank of Mongolia has decreased so much?
As of today, Mongolia has the highest tax rate on mining and it’s now an unquestionable fact that it’s the time to review the tax and legal environment. As I mentioned before the amount of gold sold to the Bank of Mongolia has decreased sharply. Despite the Windfall-tax law came into force, the state budget revenue from gold accounted MNT 4.9 billion in 2006 and MNT 34.2 billion in 2007 respectively. But in 2008 the state budget plan failed for over MNT 350 billion, which shows how much the tax revenues decreased. Although data shows that countries with access to rich natural recourse revenues, tend to have higher tax ratios, it is clear that today’s circumstance already doesn’t accept such tax policy. Rather we should revise laws and regulations concerning the reserve rental tax.
Many participants of the forum suggested including an amendment in the Sustainable Agreement with Boroo Gold, which sets a requirement to sell their gold only to the BoM and Commercial banks in Mongolia in order to increase gold reserves of the country. Otherwise, gold will still be carried out of the country. Besides, all gold mining companies should have the same rights, shouldn't they?
I think there are other histories of governmental support to the gold sector before the Windfall-tax law passed. How does banking sector support the gold sector?
Yes, there was. It’s now became a history. It was called “Gold Program-1, 2”, which had been supporting the gold miners in a systematic and proper way by the government. Before the implementation of “Gold Program-1, 2”, Mongolia had been extracted on average 722-899 kg of gold for 5 years. As a result of the program the gold production growth was increased 7.5 times in 1996 from the beginning of 1990s. This is not a small number. Statistic shows that the growth was increased 15 times in 2000. Nevertheless, sudden approval of the Windfall-tax law in 2006 was disappointed all the gold miners.
For all the time the banking sector was on the side of gold miners. TDB offers to our gold miners a range of loans from its own and external resources such as short-term business loan to finance working capital, short and long-term business loans to support production, advanced (preliminary) financing loan and short-term gold guarantee loan etc.
The Central bank and only several commercial banks, including TDB, actively involved in gold buying activity in Mongolia. TDB began buying gold in the year 2000 and now hold a significant presence in the market as well as considerable experience in gold trading.
Further, not only the financial organizations, but also the government should start paying attention to the gold mining industry. As I said before the mining industry is one of the strategic sectors to stimulate growth in our economy. At this time, when the commercial banks do not have enough sources to satisfy the miners’ financial needs, the government should consider financing of gold industry and constituting an adequate legal environment. Besides, to build up a defense against the financial crisis, we need a new gold program to follow up. As Mongolian gold production has become less competitive, gold companies have delayed their exploration activities, placer deposits are used up. In connection with starting the production at the main gold deposits, it will requIre a lot of investment on advanced equipments and technologies and of course skilled workers. There are some companies which have licenses of potential gold deposits but have only 2 equipments and bad manegement systems. How we should improve business operations of such companies? Is there any need of intermediate-operator company for these companies? Should we have a consortium instead of little companies? All these strategical issues should be included in the new gold program and implemented in the near future.
What is gold price prognosis at the world market ? What is the importance to increase gold reserves during this recession period? Would it affect the stability of foreign exchange rate?
Gold prices at the world market rose solidly since 2001. The reserve of the gold in the world is declining and the demand of the gold is still rising. The market prognosis shows that the price will be stable and internationally well known experts are expecting further growth. Overall forecast is that the gold price might be USD 1000 and over per ounce in the next 2-3 years. During a recession period, gold price likely rise up. In addition, US economy is in recession, so there is a expectation that the price of gold not likely to decrease in the near future. World financial professionnals argue that during a recession period gold plays dominant role in the international financial market as playing the role of main international currencies.
As a President of Mongolian Banking Association, do you think that now is the time for the Government to take part in financing the gold miners through the commercial banks?
I believe that all parts: government, commercial banks and gold industry understand and agree that we need to take urgent changes in tax and regulatory policies on gold mining, one of the main product of export, important part of the monetary policy and economic growth of Mongolia.
Commercial banks plan to do many things in the near future in cooperation of BoM, Parliament of Mongolia and Government. For example, the commercial banks would like to support the gold mining industry with the financial assistance of the Government. In plus, if the government reviews its Mineral Law, it would affect favorably the Mongolian export, foreign currency reserves and mining sector employment too.
Trade and Development bank of Mongolia, jointly with Bank of Mongolia, organizes Gold Finance Conference in Ulaanbaatar
Trade and development bank of Mongolia (TDB), Mongolia\'s largest corporate bank, and Bank of Mongolia (BoM), the Central bank of Mongolia, had organized together a conference on the gold mining and its financing difficulties. The objective of the conference, which was held on February 20, 2008, was to openly discuss issues to overcome the economic and financial crisis by significantly increasing the volume of gold mining, stabilizing the foreign exchange rate. With windfall tax as a dominant backdrop, policy makers from government, parliament, the gold mining companies, international organizations met to understand and explore opportunities, risks, benefits and pressing developments of increasing the gold mining in Mongolia.
Opening the conference, Mr B.Medree, CEO of TDB, opined that with Mongolian gold production declining over 40 to 60 percent since the implementation of windfall tax in 2006 and the government\'s determination to provide further boost to the government revenue, Mongolia is poised for a leap ahead. Companies have slowed and halted their activities and with less production, Mongolian international currency reserves declined, resulting 40 percent of the depreciation tugriks versus US dollars. To create significant additional cash inflow into the national economy at the time of credit crunch, Mongolia needs to boost the gold production and in order to do that, policy makers of the state should create a favorable tax and legal environment for the gold mining companies. Also, BoM and Government should provide capital to fund these expansion plans via distributed by the commercial banks with “loan repayment in the form of gold”.
According to Mr. L.Purevdorj, President of BoM, the Mongolia gold mining is based on strong fundamentals and the BoM is ready to work with commercial banks to support financially the gold companies. Even though there would be challenges in the form of rising foreign exchange rate and high lending interest rates, the Mongolian economy is largely insulated from global weaknesses and is strongly poised to continue the robust growth if financing of gold companies implemented in an efficient manner.
Mongolian Prime Minister S.Bayar began the open discussion by about the ability of the Government to take its proper decision and when needed, the Government should have the capacity to reconsider its decisions made. Regarding the windfall tax, if Bank of Mongolia, the commercial banks, gold companies can provide an accurate statistics and facts on the windfall tax, the Government and Parliament are ready to discuss the elimination of the Windfall tax. The Prime Minister also thanked TDB and BoM organizing the event in the right moment and promised to take flexible actions on the mining sector very soon. In fact, S.Bayar asked to the Minister of Mineral Resources and Energy , D.Zorigt to work with closely with the private sector representatives to study on the Mineral law and windfall tax amendments and present it to the Government as soon as possible.
The event was attended by around 100 delegates from the Mongolian Parliament and Government, including MP N.Batbayar, O.Batchuluun, D.Zorigt, Kh.Badamsuren, Ch.Ulaan, the Minister of Mineral resources and energy D.Zorigt, MP and the Deputy Minister of Finance T.Ochirkhuu, the President of BoM, L.Purevdorj and Deputy President D.Enkhjargal, the top gold companies, Mongol Gazar, Jump, Gatsuurt, Altan dornod, Mitsui etc.. and international organizations representatives from ADB, IFC, Goldman Sachs and many others.
The conference also highlighted opportunities and issues with high importance such as improvement in technique and technologies, possibility of accessing in the international debt market with IPO and suggestions about the way of handling gold transactions with BoM.
Mr.Myanganbayar, President of Mongol Gazar LLC, commented that the conference provided an excellent platform for gold mining companies to gain exposure to Mongolia and the regulatory & procedural aspects of mining in the country, besides providing excellent networking opportunities with international and local financial institutions. Also, he praised TDB’s role in the international financial sector and congratulated TDB for organizing the Gold Finance Conference, adding “TDB is Mongolia’s financial gateway to the world and thanks to them, we are now working with Goldman Sachs. The moment calls on us to dig deep within ourselves and advance a new, rational set of ideas to be pursued by the policy makers. We need incentives, opportunities and ability to work in a favorable condition. We need training, know-how and the Ministry of Minerals and Energy should organize with their international partners such training.”
At the conference, experts stressed the importance of supporting the exploration in the gold mining that will boost future production. Mr. D.Zorigt, minster of Minerals and Energy, then delivered a closing speech where he spoke of the need to have a group of private sectors from the conference to pursue the dialogue with the Government, regarding the necessity of eliminating the Windfall tax, improvement of gold selling to BoM etc… Next week, the conference participants will form a working group and submit the suggestions to the Government.
TDB will organize “Gold Finance Conference”
TDB will organize “Gold Finance Conference” with MongolBank to support Mongolian gold mining industry, on 20th February, 2009. The overall purpose of the conference is to openly discuss the issues to overcome the economic and financial crisis by significantly increasing the volume of gold mining, stabilizing the foreign exchange rate.
The conference will be a gateway through which the gold mining companies make part of their facing problems and difficulties to the Mongolian government and parliament, after having discussion about them with MongolBank, TDB and gold companies.
Expansion of ATMs
TDB has deployed Automate Teller Machine (ATM) service first time in Mongolia. With the goal of bringing banking services closer to the points of greatest convenience to customers, TDB has recently accomplished the expansion of its ATM network at following locations: “Niislel Daatgal”, “Sansar MegaStore” and “Sentii” Hotel, Shopping center ‘Chadanguud’ in Dornod province, Railway Station “ZuunKharaa”, Post Office of Sainshand.
Also the bank has moved an ATM, which was located in the Post Office-24 to the Store “Altan tugrug”.
Shopping center ‘Chadanguud’
Railway Station “ZuunKharaa”
"Niislel daatgal" company building
“Altan togrog” shop
TDB opened a new nostro account in Sweden
TDB is proud to announce, for the first time ever in Mongolia, the opening of a new nostro account with the Nordea Bank AB of Sweden, thus facilitating Swedish Krona (SEK) settlement between the two countries. The bank has so far established correspondent relations with more than 80 banks in the world and has 24 accounts held with foreign banks in 14 different convertible currencies. Having efficiently established the broadest international relationship, TDB is able now to offer to its customers’ international settlement and currency exchange in SEK fast and accurately at lowest cost.
With this new opening of an account in Sweden, TDB confirms its position in the Mongolian banking sector as an “International face of Mongolia”.
||NORDEA BANK AB
Fees and commissions
|Outgoing international remittance
/min 10 USD, max 30 USD/
If Swedish Krona payment returns back because of wrong uncompleted information provided by user the fees will be charged from the total amount.
|Cash deposit to Commercial bank's current account
|Amendments and cancellations of payment orders upon customer's requests
Foreign investment and Foreign trade agency sign cooperation agreement with Trade and Development Bank of Mongolia
The cooperation agreement signing ceremony between “Foreign Investment and Foreign Trade Agency” of Mongolia and “Trade and Development Bank” of Mongolia was held on March 17th, 2008.
This cooperation agreement offers reciprocal advantages for both organizations to increase TDB contribution to the country’s economy, to render a comprehensive and real support to Mongolia’s economic development, to enhance the two organizations collaboration in attracting the foreign investment into the country as well as organizing business forums, conferences and bilateral meetings.
In addition, TDB will not only assist FIFTA with IT programs in its capacity and provide IT services with its own created programs, but also will sponsor business forums and meeting organized by FIFTA.
The collaboration of the two organizations will bring one step forward in the services provided to foreign investors and foster a concrete support to their activities in Mongolia. Particularly bank and finance services can be combined with online consulting services of social and economic information.
Trade and Development Bank named the “Best bank” of the year 2007
The Government of Mongolia and Mongolian Chamber of Commerce and Industry granted TDB as Best bank amongst Top 5 commercial banks in Mongolia. This recognition was presented during the award ceremony for “Top 100 enterprises”, held in Sunjin Grand Hotel on February 29th, 2008.
The Best Bank award honors TDB for successfully expanding its business in corporate finance and capital market. As the leading bank in the Mongolian financial market, TDB has worked to reduce its loan interest by raising low interest funds from the international financial market. In 2007, encouraged by the bank’s Moody’s rating, the Bank has registered its inaugural USD 150 million EMTN Programme and successfully issued USD 75 million Registered Notes. This debut issuance was Mongolia’s first ever public placement of debt in the international capital markets. By successfully raising these funds, TDB has been able to provide longer term loans to its clients at lower interest rates.
TDB serves over half of corporate borrowers in Mongolia and within the Mongolian banking sector, TDB holds the largest portfolio of foreign assets, making it the lead player in the foreign exchange market, handling 50 percent of the international transactions.
Economic and Social Situation of Mongolia (As first 8 months of 2007)
General Government budget
In the first 8 months of 2007, total revenue and grants of General Government budget amounted to 1 051.9 bln.togrogs and total expenditure and net lending 840.6 bln.togrogs. The General government budget overall balance surplus was 211.3 bln.togrogs.
Current revenue of General Government amounted to 1 048.1 bln.togrogs and current expenditure 713.6 bln.togrogs. The budget current balance was a surplus 334.5 bln.togrogs.
Compared with the same period of previous year, tax revenue increased by 30.3 percent, taxes on foreign trade increased by 31.6 percent and excise tax increased by 29.9 percent.
The shares of capital expenditure and net lending in the total expenditure and net lending amounted to 10.6 percent and 4.5 percent, which were increased by 0.2 points and 0.7 points compared to the same period of the previous year. But the share of current expenditure in the total expenditure and net lending amounted to 84.9 percent, which decreased by 0.9 points, compared with the same period of the previous year.
Money, Loan and Stock market
According to the report of the Bank of Mongolia, at the end of August of 2007 money supply (broad money, or M2) increased by 4.8 percent or 100.8 bln.togrogs over the July of 2007, reaching 2195.4 bln. Togrogs.
Currency issued in circulation inscreased 8.2 percent or 26.5 bln.togrogs compared to July of 2007, reaching 351.6 bln.togrogs and compared to August of 2006, increased by 39.0 percent or 98.7 bln.togrogs.
Time saving deposits increased by 2.3 percent or 22.8 bln.togrogs over the previous month, increased by 82.2 percent or 460.0 bln.togrogs compared with August of 2006, reaching 1019.7 bln.togrogs.
As for foreign currency deposits, they increased by 9.9 percent or 32.0 bln.togrogs reaching 355.3 bln.togrogs over the previous month and decreased by 10.4 percent or 41.1 bln.togrogs compared with August of 2006 .
In the end of August 2007 the remainder of loans outstanding increased by 63.8 percent compared with August of 2006, reaching 1808.1 bln.togrogs. Meanwhile, principals in arrears increased by 50.5 percent and substandard, doubtful, loss loans decreased by 4.9 percent. The nonperforming loans reached 64.1 bln.togrogs, which was 3.5 percent of the total loans outstanding.
The nominal rate of togrog against US.dollar is 1187.3 togrog at the end of August 2007. Compared with August of 2006, rate of togrog weaken by 1.7 percent. The nominal rate of togrog against EUR is 1621.9 togrog compared with August of 2006, rate of togrog weaken by 8.2 percent, the nominal rate of togrog against CNY is 157.3 togrog compared with August of 2006, rate of togrog weaken by 7.2 percent.
According to Mongolian Stock Exchange report, in August of 2007, the stocks were traded 23 times, in total 13.8 mln.stocks were traded and value of traded stocks has reached to 12.2 bln. togrogs. Compared with July of 2007, stocks were traded increased by 5.5 times and value of traded stocks increased by 11.5 times respectively, stocks were traded decreased by 27.3 percent and value of traded stocks increased by 6.9 times compared with August of 2006. During August of 2007, the TOP-20 average index increased by 3856.4 points compared with July of 2007, reaching 10490.2.
Total market capitalization of listed companies reached 740.4 bln. togrogs in August of 2007.
Consumer price index
In August 2007, the consumer price index increased by 3.3 percent compared with previous month, by 11.3 percent from the corresponding period of previous year, by 10.6 percent from the end of previous year and by 17.2 percent compared with reference period (December 2005).
In August 2007, the prices of the footwear & cloth, miscellaneous goods and services, household furnishings & equipment, communication, restaurants and hotels, transport, food and non-alcoholic beverages, housing, water, electricity & fuels, alcoholic beverages and tobacco, medical care and education groups increased by 0.3-20.2 percent. These were the major contributions to the increase in the overall index of 3.3 percent.
Prices of group recreation and culture decreased by 0.2 percent.
In August 2007, the consumer price index decreased by 1.2 percent in Selenge aimag and in the rest aimags consumer price index increased by 0.1-6.2 percent.
For the first 8 months of 2007, total external trade turnover equaled 2402.5 mln. US dollars, of which exports 1143.3 mln. US dollars and imports 1259.2 mln. US dollars. Total external trade balance turned a deficit of 115.9 mln. US dollars. As compared with the same period of the previous year, total external trade turnover increased by 30.5 percent, exports by 27.0 percent and imports by 33.9 percent respectively. As compared with the same period of the previous year, mineral products exports by increased 199.7 mln. US dollars, natural or cultured pearls, precious metal, jewellery export by 61.3 mln. US dollars and base metals and articles exports increased by 1.4 mln. US dollars but textiles and textile articles decreased by 16.5 mln. US dollars.
Compared with the same period of the previous year, the greezy cashmere and combed goat down exports increased by 2.9 and 21.2 mln. US dollars respectively. In the recent years mineral products export increased drammatically. It is influensed by growing of copper concentrate and zinc concentrate export. Mineral products import comprises 64.9 percent, natural or cultured pearls, precious metal, jewellery 15.6 percent, textiles & textiles articles 13.5 percent, raw & processed hides, skins, fur & articles thereof 2.0 percent, live animals & animals origin products 0.7 percent of the total export and it\'s amount comprises 96.7 percent of the total export.
The volume of copper concentrate exports decreased by 0.7 percent or 2.6 thousand ton and their value in US dollars increased by 28.7 percent or 112.8 mln. dollars compared with the same period of the previous year. For the first 8 months of 2006, the average price of copper concentrate per ton was 981.6 US dollars. But in the first 8 months of 2007, it was 1271.4 US dollars and increased by 29.5 percent. It is keeping the high percent of mineral products, machinery, transportation vehicles import in the total import. In the first 8 months of 2007, mineral products import comprises 28.2 percent, machinery, mechanical equipment, electric appliances, recorders, TV sets & spare parts 19.9 percent auto, air & water transport vehicles & their spare parts 9.6 percent, food products 6.7 percent of the total imports.
Compared with the same period of the previous year, mineral products imports increased by 79.6 mln. US dollars, machinery, mechanical equipment, electric appliances, recorders, TV sets and their spare parts import by 76.6 mln.US dollars, auto, air and water transport vehicles and their spare parts import by 34.6 mln.US dollars, food products import by 26.2 mln. US dollars and vegetable origin products import by 6.2 mln. US dollars respectively, which are comprised high percentage in the imports.
But textiles and textile articles import decreased by 15.3 mln. US dollars.
Trade and Development Bank becomes the first bank in Mongolia to receive Moody’s commercial bank rating
Moody’s Investors Service is one of the three major international credit ratings agencies. It has been founded by John Moody in 1900. Moody’s has offices in 22 countries worldwide and over 1000 analysts covering every industry, government level as well as structured and infrastructure finance. Moody's publishes investor-oriented credit research, including in-depth research on major debt issuers, industry studies, special comments and credit opinion handbooks. Moody’s issues ratings for more that 100 sovereign nations, 11,000 company issuers, 25,000 public finance issuers and 70,000 structured finance obligations.
The reason of obtaining such a risk ratings is:
- facilitates wider access to the global capital market
- assists with diversification of investors base, thus enhancing ability in raising capital
- enhances financing flexibility
Users of Credit Ratings are Investors (including banks and other financial institutions, institutional investors etc.), Issuers, Intermediaries and Regulators.
Moody’s Bank Ratings
Moody’s typically assigns a Bank deposit Rating and a Bank issuer Rating to a bank.
- Bank deposit Rating – A bank’s ability to repay punctually its domestic currency deposit obligations.
The rating assigned for TDB is Ba2.
- Bank issuer Rating – A bank’s ability to honor senior unsecured financial obligations and contracts.
The rating assigned for TDB is Ba2.
Seven Pillars of Bank Analysis
- Operating Environment
- Ownership and Governance
- Management Priorities and Strategies
- Franchise Value
- Recurring Earning Power
- Risk Profile
- Economic Capital Analysis
What it means for Trade and Development Bank of Mongolia :
Being a strong and trustworthy financial institution requires good partnership and cooperation not only with local counterparts but also with organizations around the world. Therefore we want to make sure that our international counterparts, partners, investors and clients have the most up-to date and credible view of our bank’s creditworthiness. International rating such as from Moody’s provide this answer. The ratings would allow the bank to:
improve relationships with our counterparts as more and more international organizations are being prohibited and/or limited under their own risk and internal regulations to do business with unrated organizations; also this will allow us to better negotiate pricing and other terms of credit lines and other financing options
- efficiently access international debt capital and syndicated loan markets, which is an important element that would help us diversify our funding
- benchmark our performance against our peers and the global banking sector
clarify strategic issues and factors that affect the credit quality of our organization, so that we can work on those areas, and maintain and further strengthen our leadership in the local market, and establish our presence in the international / regional markets.
“SILK ROAD AWARD” for outstanding contributions to business ties with Mongolia
Mr. Randolph Stanley Koppa, President of Trade and Development Bank of Mongolia, was honored by the Mongolian National Chamber of Commerce and Industry with its 2007 SILK ROAD AWARD for his contribution to sustainable growth in the local financial sector. The award was successfully launched in Ulaanbaatar on February 1, 2008.
The Mongolian National Chamber of Commerce and Industry has been organizing the Silk Road Award event since last year to provide support and recognition to businesses making a meaningful contribution to sustainable growth in the local economy.
Mr. Randolph Stanly Koppa has been with Trade and Development bank since October 2004. He is an international banker who has worked in 12 countries over his 40-years career. For the past 15 years he had been with ING Bank provided technical and managerial assistance to TDB.
TDBM has become the first Mongolian bank with total assets grew to MNT 500 000.0 million. Furthermore, a credit rating of B2 from Moody’s, one of the world leading agencies, improved recognisibility of TDB in international markets. This allowed TDB to successfully complete the first ever public placement of debt by a Mongolian company in the international capital markets with a USD 75 million senior unsecured bond issue within a USD 150 million EURO medium Term Notes (EMTN) Program arranged by ING Bank.
TDB would like to take this opportunity to congratulate Mr. Delia Barcelona, UNFPA – United Nations Population Fund, Mr. Mark Minton -USA Аmbassador, Mr. Arshad Sayed -World Bank Country Manager & Resident Representative and all others nominees and winners of this year’s award for the outstanding contribution they have made to the development and wel –being of Mongolia. Moreover, the Bank would like to thank all of management and staff at the bank and our loyal customers for their dedication and contribution to such remarkable progress, which we trust will continue for years to come.
5% DISCOUNT will be accorded to payment paid using TDBM\'s VISA, MASTER and CREDIT CARDS.
Discounts apply to all services provided by BAYANGOL HOTEL and applies only to published rates.
|TRADE & DEVELOPMENT BANK OF MONGOLIA
|TEL: (976-11) 32 62 89
||TEL: (976-11) 32 67 78|
TDB brings you the best corporate and investment banking service
Since its establishment the bank has been leading the Mongolian banking and financial market for 17 years.
Today the bank represents 19.1 percent of the total banking sector assets. In terms of loans, the bank is holding 19 percent. After tax earnings by the first half of 2007 were 32 percent of those reported for the entire banking sector.
Encouraged by its Moody\'s rating in 2006, the Bank has registered its inaugural USD 150 million EMTN Programme and successfully issued USD 75 million Registered Notes. This debut issuance was a launch of Mongolia\'s first ever public placement of debt in the international capital markets. The transaction was 9 times oversubscribed, and in total 96 investors from 13 countries purchased the bond. As long as TDB has been successfully expanding its business in
corporate finance and equity capital market, Investment Banking Department was established seperately in 2007 to assist Mongolian public and private corporations in raising funds in the international and local capital market, underwriting bond arrangement, etc.
International face of Mongolian banking sector
TDB has established correspondent relations with over 80 international financial institutions and has 22 correspondent accounts with the world\'s major clearing banks such as ING Bank N.V., HSBC Bank N.A., Bank of Tokyo Mitsubishi UFJ Ltd, Dresdner Bank AG, Citibank N.A, American Express Bank Ltd and Commerzbank AG. TDB is one of the key players in international trade finance business in Mongolia, as the Bank serves high profile customers in various industries such as wholesale and retail, food, energy (import of oil), mining, transportation and construction. In August 2006, TDB has become the first Mongolian bank to be included in the Global Trade Finance Program managed by the IFC. In 2006 the bank has arranged several club deals for its major corporate clients with participants first time in Mongolia, being foreign financial institutions and organizations.
Moreover the bank continued to take participations in syndicated loans issued by the banks in the CIS region. The Bank participates in various on-lending programs to support the private sector and SME development and environmental protection projects funded by the World Bank and JBIC. The Bank agreed with FIFTA in 2007 to cooperate on the development of new opportunities in FDI into Mongolia.
Trade and Development Bank of Mongolia signs a framework cooperation agreement with Bayern LB
Ulaanbaatar, 28 June 2007
Today, the representatives of the Trade and Development Bank of Mongolia (TDB) and Bayerische Landesbank (Bayern LB) have signed the Framework cooperation agreement under which the clients of TDB can finance their imports of goods and equipment from Germany and other OECD countries. The Agreement should play an important role in further developing business relations between Mongolian and German entrepreneurs and should bolster the trade between the two countries. Bayern LB was founded in 1972 and is the second largest Landesbank in Germany with total assets amounting to EUR 353 billion and in 2006 reported profits of EUR 1.35 billion. Bayern LB is active in Central/East European financial markets and has a presence in North America and Asia.
Trade & Development Bank of Mongolia is the largest bank in Mongolia in terms of assets and equity that amount to over MNT 500 billion and over MNT 60 billion respectively. TDB also is the market leader and is the most experienced bank in terms of foreign trade related business.
The signing ceremony of the agreement was a part of the Germany-Mongolia Business Forum organised by the Foreign Investment and Foreign Trade Agency of Mongolia and was attended by Mr. Glos, Economy Minister of Germany and Mr. Bayartsaikhan, Minister of Finance of Mongolia.
Trade and Development Bank of Mongolia (TDBM) ratings have been upgraded and affirmed by Moody’s Investor Services (Moody’s)
Trade and Development Bank of Mongolia (TDBM) ratings have been upgraded and affirmed by Moody’s Investor Services (Moody’s)
On 4 May 2007, Moody’s announced new ratings for TDBM. The Global Local Currency Deposit Ratings are raised to Ba1/Not-Prime from Ba2/Not-Prime. The Foreign Currency Deposit Ratings are unchanged at B2/Not-Prime. The Local Currency Issuer Ratings are raised to Ba1/Not Prime from Ba2/Not Prime. The Foreign Currency Issuer Ratings are unchanged at Ba2/Not Prime. The Foreign Currency Debt Ratings for senior unsecured obligations are unchanged at Ba2. The Foreign Currency Debt Rating for subordinated obligations is raised to Ba2 from Ba3. The outlook is stable.
The rating changes come as part of the Moodys’ refined ratings methodology and the bank’s outstanding performance in 2006. The Year 2006 has been a breakthrough year for TDBM as the Bank has posted a record after-tax profit of MNT 11.7 billion generated on the asset base of MNT 426 billion, with profits and assets growing almost 60% and 40% respectively. The preliminary results for the first quarter of this year promise that the 2007 would be of even better performance for the bank. As of 31 March 2007, total assets of the bank reached MNT 482 billion, total equity reached MNT 58 billion and profit after tax reached MNT 4.9 billion.
TDBM is confident that the year 2007 will even further strengthen the bank's position as market leader and will be committed to achieve highest customer satisfaction by developing and providing demand driven, valuable banking solutions for corporate, SME and retail customers.
The co-branded card has been launched
From now on, your handset usage will let you collect bonus points on your card.
Trade and Development Bank is offering a loyalty card in cooperation with Mobicom corporation to TDB and Mobicom’s post-paid users. This is a payment and bonus card. Earning Bonus points is really easy. All you need to do is use your Mobicom’s products and services and your Mobicom Loyalty card when you spend your money at any of the participating Loyalty businesses. Then, once you have collected enough points, you can redeem them for one of the great Loyalty rewards on offer. Moreover, as a payment card, a cardholder can use all features of Visa card such as ATM, POS transaction, credit line, and can be served Mongol Post Bank, Savings Bank, Ulaanbaatar City Bank, and Khaan bank’s all branches and merchants nationwide.
Bonus points can be redeemed as with discounted Mobicom products and services, free handset, top-up cards, free air-time, and vouchers to be served other merchants such as Naran, Nomin, and Tushig Beauty.
In other words, every usage of Mobicom’s services such as air-time, sms, MMS, GPRS will let you collect bonus points. For Zone 160 and Zone 400 users, 1 bonus will be awarded by their every 80 MNT bill payments. For Gold and Platinum users, 1 bonus point will be given by their every 50 MNT bill payments. Once you have collected enough points, you can get redemption from any branches of Mobicom.
To be a Loyalty cardholder, please apply for TDB or Mobicom Corporation. It is our pleasure to announce that TDB is giving 30% discount on this card’s annual fee. Now the annual fee is just 2500 MNT.
BE LOYAL & MAKE IT VALUE
International money transfers warning and disclaimer
Therefore TDB is disclaiming that the transaction with application errors can be subject to cancellation and refund and TDB will not be responsible for any financial or other responsibilities.
Person (A) from Germany wiring some currency to person (B) in Mongolia who works in (X) company, but he/she made some errors on his/her INTERNATIONAL REMITTANCE ORDER, as following...
|Ordering customer name:
||(A) Dondog Damba|
||(B) Delger Damba (Capital Invest LLC) /referring beneficiary name and the X company that person B works/|
||1234567890 /it’s the account number of the company (X)|
In such case as an above, transaction will be subject to cancellation and refund, because beneficiary account number is not matching to the beneficiary account holder’s name. Therefore bank would refund the funds back to the Remittance Ordered bank.
According to the International conventions that Mongolia has been ratified, international bilateral agreement, Mongolian laws and legal acts, other law and regulation that apply to the TDB and its correspondent banks, some transactions can be subject to cancellation or refund.
Hereby, TDB is disclaiming that bank will not be responsible for any financial or other responsibilities.
Person (A) from Mongolia is wiring some currency to person (B) in Iran who’s holding account at Bank Tejarat; Tehran, IRAN
|Ordering customer name:
||(A) Peter Gabriel|
||(B) John Harrison|
|Benaficiary bank name:
||Banque Tejarat; Tehran, IRAN|
In such case as an above, transaction will be subject to cancellation and refund. The correspondent banks will refuse to execute this transaction because, beneficiary’s bank’s name is listed on SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS by OFFICE OF FOREIGN ASSETS CONTROL.
Therefore bank would refund the funds back to the Remittance Ordered sender and some banking fee couldn’t be refunded, if it’s taken by other parties such as a correspondent bank.
ШИНЭ МЭДЭЭ МЭДЭЭЛЭЛ
Худалдаа, хөгжлийн банкны фэйсбүүк хуудсаар өрнөсөн Мост Мони үйлчилгээний талаарх “Миний цахим хэтэвч” видео бүтээлийн уралдаан фэйсбүүк хэрэглэгч болон шүүгчдийн 50, 50 хувийн саналаар дүнгээ гаргалаа.
Арилжааны банкууд болон Монголбанк, Сангийн яамны ажилтан, албан хаагчдын дунд уламжлал болон явагддаг “БАНКИР 2013” сагсан бөмбөгийн аварга шалгаруулах тэмцээнийг энэ удаад Худалдаа, хөгжлийн банк зохион байгуулахаар бэлтгэл ажлаа хангаж байна.
Монгол улс дахь худалдаа, түүхий эдийн санхүүжилтийн өнөөгийн байдал, тулгамдсан асуудал, түүнийг сайжруулах талаар төрийн болон хувийн хэвшлийн байгууллагууд хамтран хэлэлцсэн олон улсын бага хурлыг GTR (Global Trade Review), Exporta групп 5-р сарын 14-ний өдөр зохион байгууллаа.