Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 23 Aug 2006
PDS Updated as of 28 Aug 2006

Project Name MON: INVESTMENT IN TRADE & DEVELOPMENT BANK
Borrower/Equity Investment Name TRADE AND DEVELOPMENT BANK OF MONGOLIA
Country Mongolia
Project/Program Number 35913-014
Status Approved
Geographical Location Ulaanbatar
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Finance
/ Banking Systems
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories

Project Sponsor

Gerald Metals, Inc.

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7197Equity Investment
(Fully Disbursed)
1,600
PS7197Private Sector Loan
(Fully Disbursed)
4,500
TOTAL USD 6,100

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation

Description

A five-year subordinated loan of up to US$4.5m in an equity investment equivalent to up to 10% in Trade and Development Bank (TDB), Mongolia's largest commercial bank in terms of assets.1

Objectives and Scope

The objectives of the proposed investment include, (i) increased financial sector stability through bolstering the confidence in one of Mongolia's most important financial institutions and by extension in the whole sector, to be achieved through demonstrating to other potential investors and the banking public that ADB has confidence in the strategy and management of the market leader, and (ii) to open an avenue for feedback that ADB can utilize in evaluating the efficacy of past and ongoing initiatives in financial sector reform and development undertaken by its public sector operations.

Project Rationale and Linkage to Country/Regional Strategy

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
The privatization of Trade and Development Bank ( TDB ) has been successful. ADB assistance in TDB has contributed in creating an atmosphere of confidence for foreign investors in the banking sector. ADB, through its public sector window has continuously provided support to the Government of Mongolia ( GOM ) to develop a sound and broad-based financial sector through its program loans and technical assistance grants. As of 31 December 2005, there are around 17 commercial banks operating in Mongolia. Total assets of these banks have grown from 29.5% in 2004 to 42.3% in 2005. In view of significant changes in 2001 on loan regulation and collateral, net loan growth jumped from 28% in 2004 to 51.1% in 2005. TDB s market position has improved compared to year-end 2004. As of year-end 2005, TDB accounts for 19.7% market share of total assets, 20.8% market share of deposits, 32.1% market share of foreign assets and 19.2% market share of loans outstanding. TDB has demonstrated strongest earnings from among the seven biggest banks in Mongolia
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/35913-014/business-opportunities

Timetable

Concept Clearance 23 Aug 2001
Fact-finding 09 Jun 2003
Management Review Meeting
Approval 20 Apr 2004
Last Review Mission 09 Jun 2003 to 13 Jun 2003

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Private Sector 7197 20 Apr 2004 09 Dec 2004 21 Dec 2004 31 Dec 2004

Contacts and Update Details

Responsible ADB Officer Veronica John ( @adb.org)
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Private Sector Investment Funds & Special Initiatives Div
Executing Agencies

Links

Project Website http://www.adb.org/projects/35913-014/main
List of Project Documents http://www.adb.org/projects/35913-014/documents