Mongolia’s most profitable bank is considering accessing the capital markets later this year, according to its chief executive, Peter Morrow.
Khan Bank is weighing up the possibility of issuing debt via an MTN programme denominated in dollars or tughrik, the local currency, and undertaking a public equity offering that would include a local and international listing, says Peter Morrow. "We have deep-pocketed shareholders so we don’t need to do anything in the short term, though in the long term we will need to raise debt and equity."
Any share offering would include a listing in Ulan Bator and one in London, with the bank hoping to raise about $100 million in total. On the debt side, Morrow says Khan Bank is considering arranging a $200 million to $300 million MTN shelf programme. He says he is hopeful the bank will issue the first tranche some time this year. The debt could be denominated in the tughrik, which according to Morrow has found favour with Asian and European investors.
Khan Bank is Mongolia’s biggest in terms of branch network and loan portfolio. Last year its loan portfolio doubled to Tug483.5 billion ($413.2 million) from Tug239 billion.