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.
NOTES
To
Editors:
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.
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