Trade and Development Bank Raises $25 Million in Oversubscribed IPO

Mongolia’s first commercial bank, Trade and Development Bank of Mongolia - TDBM , has raised ?85.5 billion ($25 million) in an oversubscribed?initial public offering?that underscores the country’s banking reforms.

TDB, which marked its 33rd anniversary this year, sold 5% of its equity to the public at ?33,000 per share, reaching its target within two days of the subscription period that ends on Tuesday. It puts the total valuation at a whopping ?1.67 trillion ($483 million).

Financial powerhouse

• Reliable:?TDB is a dominant player in Mongolia’s corporate lending market, accounting for 43% of all loans to companies last year. The bank has issued five international bonds (it is also the first in the country to issue one) and secured $1.1 billion in medium- and long-term financing.
• Global: It has a strong international presence, with ties to 300 banks and financial institutions worldwide. It handled 32% of Mongolia’s cross-border transactions and 27% of its trade investments in 2022.
• Green: TDB has been a pioneer of green finance in Mongolia since 2012, investing more than ?1 trillion in projects such as energy efficiency,?ger?district improvements and renewable energy. It aims to become green and sustainable by the end of this year and adopt a climate change risk governance transparency system by 2025. The funds raised by the IPO will be used for these initiatives.

The IPO comes as TDB’s total assets exceeded ?10 trillion for the first time. Its interest income rose 7.2% to ?163.8 billion last year, while its net profit jumped 45% to ?47.4 billion.

Mirae Asset Securities (HK) is the lead underwriter and TDB Securities SC is the co-underwriter for the IPO. EY Mongolia is the financial auditor and BDO Audit, Tax & Advisory is the valuation adviser. Dashnyam Partners LLC is the legal adviser.