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Trade and Development Bank Business profile

Trade and Development Bank (TDB) was established in 1990 and over past decade, has become a leading banking and financial services provider in Mongolia.

Trade and Development Bank
Trade and Development Bank

TDB, the oldest bank of Mongolia, prides itself for its leading position in the universal banking service provider, offering over 100 types of international standard banking products, services and has about 1278 highly qualified staff providing professional and user friendly banking services through a network of 46 branches, settlement centers, 161 ATMs, 1957 POS terminals. TDB is undoubtedly the major player in the financial and banking markets as well as a major innovator of the Mongolian financial sector.

TDB is named as the largest bank in Mongolian banking and finance sector by reaching total asset of MNT 3825.2 billion at the end of June 2013.

TDB, successfully issued USD 300 million senior unsecured notes listed at Singapore Stock Exchange on 13 September 2012. This was the fourth time that TDB tapped the international bond markets, after two successful senior unsecured deals in 2007 and 2010, respectively, and a subordinated notes issuance in 2010.

Furthermore, one of the most important highlight was TDB signed an investment agreement with The Goldman Sachs Group, a leading global financial services firm. Goldman Sachs has acquired a 4.8 percent stake in TDB in January 2012. The investment assists TDB in growing its business to meet the expected increased needs of its clients as Mongolia’s economy continues a period of strong economic growth.

In October of 2012, TDB announced the official launch of Bloomberg TV Mongolia in partnership with Bloomberg International. The launch of Bloomberg TV Mongolia signifies the introduction of the first international broadcast news organization in Mongolia, one of the fastest-growing stock markets and investing environments in Asia today.

On June 11th 2013, TDB Capital and MG Leasing, a subsidiary company of Japanese Sumitomo Mitsui Banking Corporation established a Corporate Alliance Agreement to launch a new company under TDB Leasing.

At the end of June 2013, TDB’s total assets reached MNT 3825.2 billion and capital funds reached MNT327.5 billion, representing 26.5% and 28.7% market shares respectively. The Bank has had a strong earnings track record with MNT 15.0 billion in 2009, MNT 20.7 billion in 2010, MNT 48.5 billion in 2011, MNT 64.8 billion in 2012 and MNT 30.7 billion at the end of June 2013.

Corporate banking division
TDB is the largest corporate lender in Mongolia with 28.5% corporate lending market share, in the end of June 2013. It serves approximately 400 major Mongolian corporations in almost all major business sectors. TDB provides various corporate banking services including corporate lending, trade financing, syndicated lending and deposit taking. At the end of June 2013, TDB’s corporate loan reached MNT 1173.7 billion and SME loan amount MNT 99.3 billion.
International Banking Department
The Bank has direct correspondent relationships with more than 150 foreign banks and financial institutions and manages its international transactions through 41 nostro accounts. By the end of June 2013, the TDB has closely collaborated with 34 major Banks and Financial institutions on trade finance loans. TDB has on-lending programs from the Asian Development bank, KFW and JICA to provide long-term financing to SME and private sector clients, with credit lines amounting to USD 11.0 million, EUR 4.3 million and USD 62 million respectively, and tenors up to 10 years. The Bank had successfully arranged USD 171.2 million and MNT 58 billion syndicated loan facilities with reputable international financial institutions from the year of 2005 to 2012.

Retail banking division
TDB believes in investing in state-of-the-art technology to provide a complete range of value-added personal banking products and services to customers. The Bank introduced for the first time in Mongolia an internet banking service with a 2-step authentication system that is connected to the SWIFT network. The bank is determined to maintain its lead position in card-related products by improving existing features of cards and introducing new products. A Loyalty card program for its rapidly developing cardholder client base has been launched to deliver a value-added financial service. TDB is the only bank that allows its clients to accept transactions from all the cards of the world’s leading financial institutions, such as Visa, Master card, JCB and UnionPay. The Bank was the first to introduce automated teller machines (ATM) to the Mongolian market.

Treasury division
TDB was the first Mongolian bank to begin treasury activities on the international foreign exchange and money markets and has the longest experience in treasury banking in Mongolia. The Bank also plays a role in supplying market information and expert analysis on the economic situation, monetary policy and currency demand and supply. The Bank has been active in the commercial gold trading business since it received the first commercial gold trading license from the Bank of Mongolia in January 2000 and is one of the leading participants in the market. The Bank was also the first commercial bank in Mongolia to buy and sell gold for export.  The Bank also maintains close relationships with mining companies providing them credit transactions, gold trading and international settlement services. Within the Mongolian banking sector, TDB holds the largest portfolio of foreign assets, making it the lead player in the foreign exchange market. TDB is leading player in the domestic money market, accounting for approximately 34.90% of total market share. It also dominates Mongolia’s with a 50.0 % gold market share respectively.

Moody’s rating on TDB
Moody’s assigned a foreign currency issuer rating of B1/P for TDB, in line with Moody’s country ceiling rating on Mongolia. TDB’s local currency issuer rating of B1/NP, affirm in March 2013, is two-notches higher than the Mongolian sovereign rating.

 

Senior Unsecured EMTN (foreign currency)

B1/P

LT/ST Bank Deposits (foreign currency)

B2/NP

LT/ST Bank Deposits (domestic currency)

B1/NP

LT/ST Issuer Rating

B1/NP

Subordinated Obligation MNT

B2

Outlook

Stable

 

Achievements

  • 2013 – “Best Bank in Frontier Market” by “Finance Asia magazine”
  • 2013 – “Best Trade Finance Bank in Mongolia” by “GTR magazine”
  • 2013 – “Best Commercial Bank Mongolia” by “Global Banking & Finance review”
  • 2013 – “Best Bank of Mongolia” award from “Euromoney” magazine
  • 2012 – “Excellent Quality of Straight Through Processing Award” by Commerzbank AG
  • 2012 – “Best Corporate Bank Mongolia 2012” by “Global Banking & Finance Review”
  • 2012 – “Best Bank of Mongolia 2012” award from “FinanceAsia” magazine
  • 2012 – “Best trade finance bank in Mongolia” GTR Asia Leaders in Trade Awards 2012
  • 2011 – “The Best Investment Envoy” award from FIFTA of Mongolia
  • 2011 – “The Best trade finance bank in Mongolia” from GTR magazine