WASHINGTON, DC and ULAANBAATAR, MONGOLIA - Media OutReach Newswire - 24 January 2025 - The U.S. International Development Finance Corporation (DFC) has received approval from its Board of Directors on a $150 million landmark financing to the Mongolian Mortgage Corporation (MIK), advised by Delphos, the global financial advisory firm.

This transformative deal will see the DFC acquire $150 million of mortgage-backed securities, managed by MIK, enabling local commercial banks to create new and affordable mortgages. The ultimate goal is to increase homeownership opportunities for thousands of low-and middle-income families in Mongolia. The approval represents the largest Mongolian financing in the history of the DFC, and its predecessor agency OPIC.

Additionally, the transaction marks a significant leap forward in MIK's promotion of housing affordability and improving living standards for Mongolians, many of whom reside in informal housing settlements. The financing aligns with broader efforts to address Mongolia's urban challenges. Ulaanbaatar, the country's capital, is home to close to 50% of Mongolia's rapidly growing population, 60% of which still reside in informal settlements lacking basic infrastructure and access to social services.

Mongolia's urban transformation is the perfect time to invest in housing development. Delphos is committed to creating a meaningful impact at this crucial juncture, aligning with UN Sustainable Development Goal 11, which aims to make cities and human settlements inclusive, safe, resilient, and sustainable. Affordable mortgages will help transition many families into formal housing, accelerating urban development and fostering economic stability.

Delphos served as the exclusive advisor on this transaction. Delphos will continue to support MIK through to the transaction's financial close.

Delphos' Chairman and CEO, Bart Turtelboom, noted that

"MIK is a systemically important financial institution within Mongolia. We are proud to support our client and appreciate their trust. We are excited to support Mongolia's robust financial services industry and urban development, helping to create a meaningful impact through this deal.

Gantulga Badamkhatan, CEO of MIK added:

"We are excited to partner with US DFC on this transformative financing. This landmark transaction with its innovative structure will pave the way to catalyzing private sector capital into Mongolian mortgage market. We appreciate Delphos' market-leading advisory work in structuring and arranging the transaction on our behalf. This financing will be pivotal for our continued growth and impact, and we look forward to reaching financial close soon."

The partnership reaffirms DFC's commitment to fostering inclusive economic development and highlights Mongolia's potential as an emerging market for impactful investments. For Delphos, the transaction reinforces its position as a trusted advisor in mobilizing capital for frontier markets.

This deal underscores Delphos' expertise in private emerging markets, especially for financial institutions. This is also Delphos' latest successful transaction in Mongolia. Since 2022, Delphos has advised Bogd Bank on nearly USD 40M in multiple international financings.

Delphos has served as the exclusive financial advisor on the deal, leading all aspects, from initial market distribution to financial structuring and negotiations.

This is Delphos' second financial services deal in Mongolia. Since 2022,, Delphos has arranged nearly USD 40M in international financings for Bogd Bank. Delphos will continue to support the Mongolian Mortgage Corporation until its financial close this quarter.

Capital raising: USD 150 Million

Sectors: Mortgages, Affordable Housing

Impact:

More affordable mortgages for housing

Ulaanbaatar's population goes from informal housing to formal housing

Higher living standards

Hashtag: #Delphos

The issuer is solely responsible for the content of this announcement.

About Mongolian Mortgage Corporation (MIK)

MIK is dedicated to enhancing access to affordable housing in Mongolia through innovative financial solutions that promote homeownership and economic development.

About DFC

U.S. International Development Finance Corporation (DFC) is a modern, consolidated agency that combines the capabilities of OPIC and USAID's Development Credit Authority while introducing new and innovative financial products to better attract private capital to the developing world. The U.S. will have more flexibility to support investments in developing countries to drive economic growth, create stability, and improve livelihoods.

About Delphos

Delphos is the financial advisor in frontier markets for NBFI and development companies and projects. They specialize in raising long-term, competitively priced capital for corporates, fund managers, developers, SMEs, sovereigns, and entrepreneurs worldwide. Since 1987, Delphos has been responsible for more than $20 billion in development finance to support the efforts of over 1,200 companies. Delphos provides market-leading transaction advisory and investment/risk management consulting services to government and private sector clients across multiple industries. Today, they advise AfDB, DFC, IDB Invest, IFC, USAID, US Ex-Im Bank, USTDA, WBG, leading private equity firms, infrastructure developers and strategic investors, and foreign governments and utilities. Delphos is a global financial advisory firm specializing in frontier and emerging markets. It has a 38-year track record of delivering impactful capital-raising solutions for non-bank financial institutions.