ULAANBAATAR, Mongolia, Oct. 26, 2017 (GLOBE NEWSWIRE) -- Capital Bank of Mongolia Ltd and Soyombo Insurance Ltd, their sister company, are pleased to announce that they have executed a $255 million financing term sheet with Milost Global Inc (the "Investor"). The financing is expected to be comprised of $55 million in equity capital and $200 million in debt. Milost Global Inc (the “investor”). Through this transaction, Capital Bank, Soyombo Insurance, Capital Brokerage and Capital Asset Management have agreed that they will be controlled by Milost Bank Corporation, whereas Milost Bank Corporation will acquire a controlling interest in all four companies. Milost Bank Corporation, through its African subsidiary Milost Bank Africa Limited is also conducting a due diligence of a Nigeria bank that has over 250 branch operations, with a purpose of acquiring full control.

The Chairman of Capital Bank of Mongolia and Soyombo Insurance Ltd, A. Ariunbold, stated, “We are delighted that Milost Global Inc has agreed to finance Capital Bank and Soyombo Insurance Ltd, strengthening and growing our position as a nationwide bank and insurance company in Mongolia. We see this as an exciting opportunity for both companies, our shareholders, and our respective teams of bankers.” 

The deputy CEO of Capital bank Mr. B.Ganbat, stated, "This transaction increases the funding diversification and strengthens the liquidity profile of Capital Bank. We are excited about the opportunities that will be created from this financing and look forward to the combined success going forward.”

The Senior Partner & President of Milost Global Asia, Dr. Chin Yew Seah, stated, “It is my great pleasure to have a chance to be able to invest and work with the management team of the Bank. The Capital Bank is part of the Bishrelt Group which itself is a major conglomerate in Mongolia but with the strengthening of banking regulations in Mongolia, there is a need to expand the capital base to enable the Bank grow. The Chairman and I share the same vision, which is to enable the bank to seek its own direction to capitalise on the opportunities that exist in Mongolia today. This comes at a time when Mongolia itself is recovering from a recession and has achieved positive GDP growth in 2016 and more robust growth in 2017. Capital Bank has been the first commercial bank in Mongolia and one of the few banks that have adapted the early use of technology in its banking system and is poised to take advantage of its unique position by partnering with Milost in order to achieve rapid growth.”

Mandla J. Gwadiso, Chairman of Milost Bank Corporation, also stated, “For Milost Bank Corporation, this is a first step towards building a good base in Mongolia. Milost Bank Corporation continues to look for well-managed banks and leading financial services companies of the calibre of Capital Bank and Somboyo Insurance. We look forward to a fruitful and yet bilateral relationship with A. Ariunbold and his teams.”

Bernard B. Yaw, Senior Partner and COO of Milost Global Inc, also had this to say, “In response to the deficiencies in financial regulation with the after-effect of the financial crisis of 2007–08, Basel III was introduced globally to attempt to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. A lot of banks especially in the emerging countries are struggling to meet the Basel III requirements. Those that can find ways to recapitalize and strengthen their Tier I capital requirement will be winners and will leapfrog over those who are lagging. This gap is definitely opening investment opportunities to Milost Bank Corporation to acquire and partner with these well run but undercapitalized banks in many emerging countries.”

Published Date:2017-10-27