🇲🇳 KHAN BANK IPO | INTERNATIONAL PR | MONGOLIA: RANKINGS

POWERED BY

🐣 Happy Easter Monday! While it may not be widely celebrated here in Mongolia, we’re excited to share the joy of this day with our global community of readers.

🤔 DID YOU KNOW?

Just 54 kilometers outside of Ulaanbaatar, you can find the world’s largest equestrian statue.
The Genghis Khan Equestrian statue stands an impressive 40 meters tall and is a tribute to the legendary warrior. It is built on top of a fascinating museum filled with a collection of Hunnu artifacts and items from the Mongol Empire. No trip to Ulaanbaatar is complete without a visit to this iconic statue, so be sure to add it to your itinerary!

 🏦 KHAN BANK IPO

Khan Bank, Mongolia’s largest commercial bank, is launching its initial public offering this week. The IPO is expected to be the biggest in the history of the Mongolian Stock Exchange and a milestone for the country’s financial sector. Here are some key facts about the deal.

The IPO details

• Khan Bank plans to sell 10% of its shares at ₮959 each, raising ₮183.4 billion ($64 million) from the public offering.

• The subscription period runs from April 13th to April 19th. The pre-IPO placement started last week.

• BDS Securities is the lead underwriter and Tavan Bogd Capital is the co-underwriter. EY Mongolia is the financial auditor and BDO Audit is the valuation adviser.

The bank’s profile

• Khan Bank is the dominant player in Mongolia’s banking industry, with ₮15.1 trillion in assets as of last year, accounting for 32.6% of the market share. It serves 82% of the population and provides 37.1% of all loans in the country.

• Khan Bank’s market capitalization is estimated at ₮1.8 trillion, making it the largest listed company in Mongolia, surpassing APU, a food and beverage producer valued at ₮1.4 trillion.

Khan Bank’s IPO is a sign of growing maturity and confidence in Mongolia’s financial sector, which has been undergoing reforms to strengthen its governance and stability. Other banks are expected to follow suit and list their shares soon. For more analysis on Khan Bank’s IPO and its impact on Mongolia’s economy, look out for our special report coming soon.

📈 DATA STORY

Here are some of the well-known indexes and their corresponding rankings where Mongolia stands:

• According to the most recent World Happiness Report, Mongolia was ranked 69th out of 146 countries in the World Happiness Index. The country's score was 5.7 out of 10, indicating a moderate level of happiness compared to other countries. It is worth mentioning that Mongolia's ranking has improved slightly compared to the previous year.

• Mongolia ranked 81st out of 190 countries on the Ease of Doing Business Index, with a score of 66.5 out of 100. The index score is calculated based on ten qualitative indicators that measure the ease or difficulty of starting and running a business in a country.

• On the Human Rights and Rule of Law index, Mongolia ranked 119th, with an index of 4.1. The average was 5.4 out of 10 points for all 177 countries in 2022.

🇲🇳 MONGOLIA SETS UP BUREAU TO BOOST GLOBAL IMAGE

Mongolia has approved a strategic plan to promote its international profile and attract more foreign investment and tourism. The plan includes the establishment of a new bureau to oversee the promotion efforts.

The bureau will coordinate various initiatives, such as:

• Building closer ties with international media and think tanks. The government is in talks with Bloomberg, BBC, the Financial Times, The Economist, National Geographic and Wanderlust to increase coverage of Mongolia. CNN has already agreed to produce promotional videos and articles on the country for 18 months.

• Showcasing traditional and modern arts and sports. Mongolia plans to present about two hundred films at the Cannes Film Festival. It has also organized events in Bulgaria, Germany, Hungary and China to highlight its culture.

• Supporting Mongolian studies and scholars. The government will provide additional funding and institutional support to 22 Mongolian studies centres and six hundred scholars in twenty countries.

In addition, Mongolia has declared 2023-2025 as years to visit Mongolia and has announced twenty-two international events and visa waivers for sixty-two countries. Its plan comes amid rising geopolitical tensions between the US and China, Russia’s war in Ukraine and the economic recovery from the pandemic. Mongolia is open for business.

🏃 QUICK STORIES

📌 The Mongolian Chamber of Commerce has established a new branch in Brussels. This latest move is set to bolster Mongolia’s position as a robust investment destination with a dynamic marketplace by facilitating direct trade and investment ties with the European Union.

📌  ADB: China’s reopening has improved prospects for Asia’s economy. Economic activity has returned to pre-pandemic levels, with GDP growth returning to its pre-pandemic trajectory. However, higher interest rates and debt raise financial stability risks, while longer-than-expected disinflation prolongs the restrictive monetary stance. While most economies are expected to see an improved fiscal balance for 2023, Mongolia’s fiscal balance is predicted to worsen by 2.4%.

📌 Whistleblowers to be Rewarded with Up to ₮1.5 billion. If passed, the Whistleblower Legal Status Bill will reward whistleblowers with ₮100 thousand ($28) to ₮1.5 billion ($422 thousand) for reporting corruption, bribery, public health, environment, consumer rights, fair competition, and business ethics-related issues. This bill is part of a broader effort to address corruption in Mongolia, which has lost 2 points in the latest Corruption Perception Index.

📌 Standard Chartered Bank & AND Global Group launched the FintechBridge 3.0 platform in Singapore. The platform enables technology companies in Mongolia and other countries to implement and collaborate with Standard Chartered Bank on building innovative and viable tech solutions.

📌 Mongolia’s Prime Minister attends the launch of the E-Business platform. The platform offers a total of 685 services, including acquiring licenses, registering a legal entity, and obtaining an electronic certificate. The Prime Minister called on citizens to receive an electronic digital signature (EDS) to support the country's transformation into an electronic, corruption-free country.

⭐ TOP NEWS

• Why Investing in Water Storage Matters in Mongolia’s Gobi Desert (The Diplomat)

• The cashmere trail: On the road with the Mongolian nomadic community (The Guardian)

• TMK Energy readies for coal seam gas production in Mongolia (The West Australian)

💭 WATCH & LEARN

Partnership Inquiries:
Place an ad

Editor: E. Zolbayar
Writer: A. Bilguun, A. Tuvshinzaya

Disclaimer: The information "Inside Mongolia" provides is for educational and informational purposes only. It is not intended to be and does not constitute financial advice, trading advice, or any other advice. The decision whether to take into account the information we provide is solely our readers' independent decision.