Investor Newsletter

The latest policy update, company highlights, FAQs, and financials

INSIDE

Policy Update

Updates in Regulations for Affordable Housing Finance Program

The transition of AFHP from the Bank of Mongolia to the Government

Company Highlights

MIK Holding and Municipal Housing Corporation Join Forces

MIK successfully implements international "ISO" standards in its operations

33rd issuance of RMBS

Contacts

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Mongolian Mortgage Corporation HFC (MIK) is a leading private financial institution established in 2006, and authorized by the Financial Regulatory Commission for housing finance services.

With over 17 years of expertise, MIK plays a pivotal role in Mongolia's mortgage and housing finance sector, contributing to urban and rural housing accessibility and sustainability.

We acquire mortgages with purchase without recourse (PWOR) terms, and securitize them, selling these securities to Mongolian banks and the Bank of Mongolia. In 2019, we raised USD 300 million through a three-year international bond offering as part of our purchase with recourse business (PWR) expansion.

Despite an initial capital of MNT 11 million, MIK Holding now holds total assets of MNT 4.95 trillion and equity of MNT 38.48 billion in 2023.

Our successful track record includes issuing the USD 300 million bond in 2019, refinancing it with the USD 250 million bond in 2021, and successfully repaying the 2019 bond on February 8, 2022.

Policy update

Updates in Regulations for Affordable Housing Finance Program (AHFP)

To enhance housing accessibility within the rural area, the Bank of Mongolia has implemented significant regulatory changes pertaining to residential mortgage loans with subsidized interest rates. These changes include:

Increased Loan Limit: The maximum allowable mortgage loan amount for the purchase of housing within the rural area, utilizing the resources of the Bank of Mongolia, has been raised from MNT 100.0 million to MNT 150.0 million.

Advance Payment Guarantee: Furthermore, in alignment with amendments incorporated into the Insurance Law on December 23, 2022, it is now feasible to obtain a guarantee from an insurance organization to cover the advance payment of the mortgage loan for individuals purchasing homes within the rural area. This additional provision seeks to facilitate further and encourage homebuyers in the region.

October 3, 2023

The transition of AFHP from the Bank of Mongolia to the Government

Since 2013, the Bank of Mongolia has jointly financed MNT 7.3 trillion in mortgages with the Government and commercial banks. However, due to the program's mismatch with the Bank's monetary policy objectives, efforts are underway to transfer it to the government.

It has been decided that the Bank of Mongolia will be responsible for the program temporarily ensuring the continuity of the program until a final decision is released by the Parliament.

Minutes of the meeting of the Monetary Policy Committee, September 2023

Company Highlights

MIK Holding and Capital City Housing Corporation Join Forces

In April 2023, MIK Holding JSC and Capital City Housing Corporation JSC forged a partnership, unveiled at the "Ulaanbaatar - International Investment and Partnership Forum 2023." B. Gantulga, CEO of MIK Holding JSC, and M. Govisaikhan, CEO of Capital City Housing Corporation JSC, signed a memorandum of understanding. This collaboration spans four key areas, including initiatives to decentralize Ulaanbaatar by financing development in satellite, suburban, and new residential areas, with MIK Holding JSC facilitating the implementation of an efficient financing mechanism.

MIK successfully implements international "ISO" standards in its operations

Information Security: The company proudly maintains its ISO27001:2013 certification for the eighth consecutive year at the company level. Furthermore, in 2022, the Group successfully obtained company-level certification, making history as the first organization in Mongolia to do so.

Risk Management: In December 2022, a meticulous two-stage audit of our risk management practices, in accordance with the ISO31000:2018 standard, was conducted. The audit reaffirmed the effective implementation of this standard, culminating in the receipt of our certification.

Compliance Management: We have completed the first stage of the external audit for the ISO37301:2021 compliance management system standard. We have received the audit report, and the implementation is underway.

33rd issuance of RMBS

In July 2023, MIK acquired 2,482 mortgages, totaling MNT 195.3 billion from commercial banks. Among these, 508 borrowers transitioned from informal housing settlements known as "ger area" to an apartment in the capital city of Ulaanbataar where half of the city’s population reside in ger districts. Notably, within the 33rd RMBS borrower group, approximately 45% are female, and 22% are below the age of 29. This data shows that the AHFP accomplishes its development targets thanks to the well-established housing finance system in place.

MARKET DATA

Company’s Financial Summary