Mongolia’s first commercial bank, Trade and Development Bank (TDB), 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 is the lead underwriter and TDB Securities is the co-underwriter for the IPO. EY Mongolia is the financial auditor and BDO Audit is the valuation adviser. DB & GTS is the legal adviser.