Frontiers Capital

Mongolia

 


MONGOLIA

With a vast area of 1.56 million square kilometers, Mongolia is located in Northern Asia between Russia and China and was under a soviet communist regime for almost 70 years. In 1990, a peaceful revolution led to a new constitution and for almost 3 decades, Mongolia has transitioned to a democratic multi-party system and a market economy that grew at 17.3% in 2011 and 12.3% in 2012.

Today Mongolia faces economic imbalances due to declining exports and continued weakening of the commodity market. Mongolia is extremely reliant on the mining sector which amounts for 20% of its GDP. Its mineral resources vastness has hindered political will for economic diversification.

In 2017, Mongolia had 2 major developments. In February, a 5.5 USD billion bailout from the IMF, World Bank, Asian Development Bank, Japan and Korea, which will allow the Mongolian government to extend a 2.2 USD billion currency swap with China by three years. In July, the election of Battulga Khaltmaa as new President. The former Judo champion has vowed to balance Mongolia’s exports with its neighbors and is planning to revoke the current government order that prevents revenue from strategic deposits from flowing through local banks.


OUR PARTNER





Mongolia International Capital Corporation (MICC) is a full-service investment bank that provides investment banking, sales and trading, and research services. Since its establishment in 2005, MICC has completed over thirty transactions worth over one billion dollars.
MICC works in a wide range of industry sectors, like mining, production & manufacturing, agribusiness, real estate and retail. Among MICC credentials are the launch of the first bond offerings on the local stock exchange by major Mongolian companies such as MCS and Gobi Corporation. MICC has also advised leading Mongolian companies, such as Monnis, Tavan Bogd, Nomin, and Shunkhlai on capital raising and mergers & acquisition transactions. In the mining sector, MICC advised the Mongolian government on the formation and structuring of Erdenes-Tavan Tolgoi in preparation for its immediate privatization and development of the world-class Tavan Tolgoi coking coal deposit.
To know more about our partners achievements in 2016, click here.


OUR PROJECTS

 

Structuring, financing, developing and operating a 16,000 hectares environmentally efficient (zero-tillage) farm in Dornod and Sukhbaatar in Eastern Mongolia.
2017 is the farm’s fourth year or operation. It produces wheat, canola, oats, barely, buckwheat and is currently under a production trial for corn.

 

Market Study and exclusive distribution of Merial products in Mongolia though the franco-mongolian joint venture Shine Uul Vets. With approximately 60 million heads of cattle, Mongolia is a strong market for veterinary products. Today Mongolia faces constant outbreaks of foot and mouth disease (FMD) which ban Mongolian meat from the global market. Shine Uul vets will continue its efforts to convince the Mongolian authorities to launch a national vaccination campaign with quality products to allow Mongolian herders to improve their livestock, access international markets and diversity the Mongolian economy.


OUR RESEARCH