Washington, D.C., September 7, 2006
—Trade and Development Bank of Mongolia has joined the International Finance Corporation’s Global Trade Finance Program, making TDB the program’s first issuing bank in Mongolia.
Under the agreement, TDB will be able to issue various trade finance instruments guaranteed by IFC up to the amount of $5 million for tenors up to 3 years, allowing the bank to be more active in financing its clients’ international trade activities.
IFC is the private sector arm of the World Bank Group. Its $500 million Global Trade Finance Program promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the program, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
The signing of this agreement is an important part of TDB’s strategy to diversify and develop its financial services and banking products.
Randolph Koppa, TDB’s chief executive officer, said, “We are very pleased to join IFC’s Global Trade Finance Program. The availability of IFC guarantees will promote and support the development of Mongolia’s foreign trade. Our clients will also be able to receive more favorable terms and conditions for their contracts with foreign counterparties.”
Richard Ranken, IFC’s director for East Asia said, “TDB’s participation in the Global Trade Finance Program will provide a boost to trade and investment in Mongolia. Through the program, IFC will support Mongolia’s small and medium enterprises, which rely on imports of machinery and equipment to grow their businesses.”
IFC’s trade finance guarantee facility is the second investment it has made in TDB. In 2004, IFC made a $1.4 million equity investment and a $3.5 million subordinated loan to TDB.
About IFC
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
.
About Trade and Development Bank of Mongolia
TDB is the largest universal commercial bank in Mongolia, active in corporate and retail banking. It leads the country’s banking sector in terms of corporate banking, gold trading, foreign exchange and money market transactions, and ATMs. As of the end of June 2006, the bank had total assets of about $358 million, total equity of $45 million, and a network of 18 domestic branches throughout the country. In 2005, TDB was named the “Best Bank of Mongolia” by the Bank of Mongolia. A major of part of TDB’s financial activities are trade-related, and TDB plays an important role in the financing of export-import contracts of major Mongolian businesses in various sectors of the economy.
