Mongolia

Delphos Advises on $150 Million Deal for Mongolian Mortgage Corporation

The U.S. International Development Finance Corporation (DFC) has approved a groundbreaking $150 million financing deal with the Mongolian Mortgage Corporation (MIK), with advisory support from Delphos, a global financial advisory firm.

This significant agreement will involve the DFC acquiring $150 million of mortgage-backed securities managed by MIK, allowing local commercial banks in Mongolia to offer new and affordable mortgages. The primary objective of this partnership is to expand homeownership opportunities for thousands of low- and middle-income families in the country.

This approval represents the largest Mongolian financing in the history of the DFC and its predecessor agency OPIC. It also signifies a major step forward in MIK’s efforts to promote housing affordability and enhance living standards for Mongolians, particularly those living in informal settlements.

The financing initiative aligns with broader initiatives aimed at addressing urban challenges in Mongolia, especially in Ulaanbaatar, the capital city, where nearly half of the country’s rapidly growing population resides. A significant portion of residents in these urban areas live in informal settlements that lack basic infrastructure and access to essential services.

Delphos sees Mongolia’s urban transformation as a pivotal moment to invest in housing development and contribute to sustainable urban growth. The firm is dedicated to making a positive impact in line with UN Sustainable Development Goal 11, which focuses on creating inclusive, safe, resilient, and sustainable cities and human settlements.

Affordable mortgages provided through this partnership will facilitate the transition of many families to formal housing, accelerating urban development and promoting economic stability. Delphos served as the exclusive advisor on this transaction and will continue to support MIK until the financial close.

Bart Turtelboom, Chairman, and CEO of Delphos, expressed pride in supporting MIK and the robust financial services industry in Mongolia. Gantulga Badamkhatan, CEO of MIK, emphasized the transformative nature of the financing deal and its potential to attract private sector capital into Mongolia’s mortgage market.

The partnership between DFC, MIK, and Delphos underscores the commitment to inclusive economic development and showcases Mongolia’s attractiveness as an emerging market for impactful investments. Delphos’ involvement in this deal reinforces its reputation as a trusted advisor in mobilizing capital for frontier markets, particularly for financial institutions. This successful transaction represents Delphos’ latest achievement in Mongolia, following previous advising roles with Bogd Bank on multiple international financings since 2022.

 

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