The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

AG Bank goes private in Japanese purchase

Last month HS Securities of Japan secured the 100% purchase of Agricultural Bank of Mongolia when its head, Hideo Sawada, delivered $6.85 million to Ulaanbaatar.

Like several state-owned banks in Vietnam, China and Russia, AG Bank was bankrupt after providing government-directed loans, provisions and state pensions while cultivating a NPL portfolio of 100%.

The previous government in 2000 decided with the central Mongol bank to privatize AG Bank within two years. The succeeding MPRP government reaffirmed that decision and issued a tender for its sale through the state property committee.

The $3.5 million minimum bid tender, organized by KPMG Barents, attracted three bids, each having to provide plans for the development of the bank. The government retained the right to veto any proposal if it felt it did not meet the interests of the Mongolian people. All three were approved.

HS Securities bid highest at $6.85 million, Russia's Alfa Bank offered $6.2 million and a local consortium lead by Golomt Bank bid $5.28 million - "much lower than advised", according to one local analyst.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree