Mongolia welcome new strategic investor in its financial sector
Ulaanbaatar, 2 August 2013
Mongolia’s TenGer Financial Group (“TFG” or the “Group”) announces that the Ministry of Economic Development approved today its investment agreement signed with ORIX Corporation of Japan, thus endorsing the entry of a new strategic investor in TFG. It is anticipated that the regulatory approval from The Bank of Mongolia (Mongolbank) will follow in due time as set forth in its internal rules. As a result, ORIX Corporation of Japan will acquire approximately 16 percent of TFG’s shares. This new investment is part of a larger ownership transformation process at TFG as some of the existing shareholders of the Group exit by selling their shares to the new investors and as indirect shareholders restructure their holdings in the Group.
Further, TFG’s existing shareholder IFC, a member of the World Bank Group, signed also an investment agreement with TFG and two advisory agreements with its flagship subsidiary – XacBank. The investment agreement increases IFC’s equity stake in Tenger to 19 percent from 15 percent, while the advisory agreements will strengthen further XacBank’s capacity. As part of restructuring, indirect shareholders of TFG - Mongolyn Alt Corporation and Ronoc – are in the process of becoming direct shareholders in the Group.
“The entry of ORIX Corporation of Japan in to Mongolia is expected to open more opportunities for international private investors” said Batbayar Nyamjav, Cabinet Member, Minister of Economic Development of Mongolia. “A diverse and balanced shareholding structure combining international reputational investors as well as Mongolian business representations is the driving force to further strengthen the governance and institutional capacity of the Mongolian financial industry” said Zoljargal Naidansuren, Governor of Mongolbank. “With the strategic partnership of the Mongolian and international investors, TFG is considering to strengthen its existing businesses and expand into new areas of business capitalizing on business expertize, know-how and network of its new partners” said Bold Magvan, Chief Executive Officer of TenGer Financial Group.
Established in 1964, ORIX Corporation (www.orix.co.jp) is a leading integrated financial services group, based in Tokyo, Japan, with a global network of companies in insurance, leasing, banking, real estate and leisure and other services spanning 27 countries and regions worldwide.
IFC (www.ifc.org) has been working with Tenger and its subsidiaries since 1999 and became a shareholder of the company in 2008. IFC and Tenger jointly established a micro-credit company in western China to help expand access to finance to micro and small Chinese businesses.
MAK Mongolyn Alt Corporation (www.mak.mn) is one of the largest business groups in Mongolia with assets in mining, aviation, construction and tourism. MAK invested jointly with TFG and IFC in the micro-credit company in Xinjiang, China.
Ronoc (www.ronoc.ie) is an Irish based private investment and advisory business operating in a broad range of businesses; including microfinance, retail financial services, and executive search services. Ronoc has been investing in Mongolia since 2008.
TenGer Financial Group is a group of companies, including XacBank, XacLeasing, TenGer Insurance, TenGer Capital, TianRong and XacSecurity, all providing fair access to broad financial services. Please visit our website www.tengerfinancialgroup.com for information about the TenGer Financial Group.
