ID :
99387
Mon, 01/11/2010 - 18:07
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Shortlink :
https://oananews.org//node/99387
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KHAN BANK ADDS ITS CAPITAL BASE
Ulaanbaatar, /MONTSAME/ The Khan Bank announces the addition of USD 20 million (MNT 28.7 billion) of subordinated debt to its capital base. This includes USD 10 million from FMO, the Dutch development bank, and USD 10 million from H.I.S. Co Ltd, a Japanese general travel agency, the bank's website reported Monday.
The subordinated debt is part of the Bank's Tier 2 capital and increases total capital to in excess of MNT 125 billion. The FMO has also provided USD 15 million in long term senior debt to support growth of the Bank's lending to small and medium enterprises.
In August 2009, Khan Bank's shareholders added USD 3 million (MNT 4.2 billion) in equity. With the addition of the subordinated debt, Khan Bank has significantly strengthened its capital base and increased its capital adequacy ratio to more than 19,6%, by far the highest level among Mongolian banks.
J. Peter Morrow, Khan Bank's CEO, has commented, "As we enter 2010, the capital increase, and the additional $35 million (MNT 50 billion) of funding, will continue to support Khan Bank's growth as Mongolia itself begins a new stage of development. We are delighted to have entered into a long term relationship with FMO, and we look forward to the active support of this prominent international organization. The investment by H.I.S represents the confidence in us and continued support by our majority shareholder, Sawada Holdings."
The Khan Bank, with 485 branches across all of Mongolia, provides banking services to an estimated 80% of Mongolian households. As the largest bank in Mongolia, Khan Bank finances corporate, small and medium businesses, consumers, and agriculture. This includes over 310,000 borrowers and more than 2,500,000 deposit accounts.
B.Khuder
15.59
The subordinated debt is part of the Bank's Tier 2 capital and increases total capital to in excess of MNT 125 billion. The FMO has also provided USD 15 million in long term senior debt to support growth of the Bank's lending to small and medium enterprises.
In August 2009, Khan Bank's shareholders added USD 3 million (MNT 4.2 billion) in equity. With the addition of the subordinated debt, Khan Bank has significantly strengthened its capital base and increased its capital adequacy ratio to more than 19,6%, by far the highest level among Mongolian banks.
J. Peter Morrow, Khan Bank's CEO, has commented, "As we enter 2010, the capital increase, and the additional $35 million (MNT 50 billion) of funding, will continue to support Khan Bank's growth as Mongolia itself begins a new stage of development. We are delighted to have entered into a long term relationship with FMO, and we look forward to the active support of this prominent international organization. The investment by H.I.S represents the confidence in us and continued support by our majority shareholder, Sawada Holdings."
The Khan Bank, with 485 branches across all of Mongolia, provides banking services to an estimated 80% of Mongolian households. As the largest bank in Mongolia, Khan Bank finances corporate, small and medium businesses, consumers, and agriculture. This includes over 310,000 borrowers and more than 2,500,000 deposit accounts.
B.Khuder
15.59
