Frontier Securities "Mongolia: Capital Raising and Investment" Conference: Mongolia Needs USD41-54 Billion Investments in the Coming Years
Ulaanbaatar, Sep 1, 2011 (ABN Newswire) - Mr. Randolph Koppa, President of the Trade and Development Bank (TDB) pointed out the huge investment needs in Mongolia in the coming years. While USD 9 billion to 11 billion is needed for mining development there are many other industries that will also demand access to large amounts of investment. For example: Infrastructure (USD 8-10 billion), Industry (USD 5-7 billion), Industrial Trade Parks (USD 10-12 billion) and Agriculture (USD 1-2 billion). In aggregate, USD 41 to 54 billion investment will be required.
Foreign investors are supplying much of this investment financing with FDI growing 30% annually. At the current rate, total FDI in Mongolia will reach a total of USD11 billion in the next five years. 65% of last year FDI however went to mining which is not proportional to the needs mentioned earlier.
There are therefore plenty of opportunities in infrastructure, which include the ground transportation network, power supply and water. Railroads and highways are a key component as they are essential for the further development of the country; they unlock the potential of mining projects.
With 65% of Ulaanbataar residents still in Gers there is also a great need for housing and a five-year plan is being developed. The banking system is also relatively small compared to other emerging countries with the loans to GDP ratio at only 34% compared to 50% for Central and Eastern Europe and over 100% in the USA, China and Korea.
Outside equity is therefore needed as GDP is set to double.
The conclusion drawn by Mr. Koppa is therefore that while major players will provide a large amount of capital needed there are still opportunities for private equity and other entrepreneurial foreign investors to cover a range from USD15 billion to 20 billion.
ABOUT MR. RANDOLPH KOPPA
Mr. Koppa is President of TDB and since March 2011 he serves as President of TDB Capital LLC as well. He came to Mongolia in 2004 as part of the management and technical assistance program provided to TDB by ING Bank.
Mr.Koppa also serves as Chairman of the Mongolian Mortgage Corporation (MIK) and is a member of the Board of Directors of the Business Council of Mongolia and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
In May 2011, Mr. Koppa received the Polar Star Award from President Elbegdorj in recognition to his contribution to developing the banking and finance sector in Mongolia. In 2007, Mr.Koppa was honored by the Mongolian National Chamber of Commerce and Industry with its SILK ROAD AWARD for his contribution to sustainable growth in the local financial sector.
Mongolia represents Mr.Koppa's twelfth country in his 43 year international banking career. He is a graduate in International Relations from the University of Wisconsin.
ABOUT MONGOLIA EXPERT SERIES
This year's conference, titled "Mongolia: Capital Raising and Investment" was the fifth edition of its kind to be organized by Frontier Securities. Having grown year on year in terms of importance since 2007, this conference has become a major event for anyone interested in exploring the latest developments in Mongolia's business environment from key direct sources. The focus of this last edition, held in the context of a robustly growing economy and booming mineral exports, encompassed the dynamics of capital raising from the viewpoint of the Mongolian government and local private sector by way of privatization and/or bond issue. It further provided the global investors community (266 Mongolian and foreign entities covering 19 countries were represented) with some relevant and up-to-date insights about the numerous opportunities offered by a wide array of sectors in the country, the most prominent of which being the mining sector.
The conference has gathered more than 500 prominent industry leaders and government officials from organizations such as Foreign Investment and Foreign Trade Agency, State Property Commission, Ministry of Road and Transportation, MonAtom, Erdenes MGL, Mongol Bank, Government of Mongolia, Ministry of Mineral Resources and Energy, Mongolia Development Bank, National Development and Innovation Committee, TDB Mongolia, Prophecy Resource Corp, Mongolian Mining Corporation, South Gobi Energy Resource as well as various professionals from international financial markets, including; Citigroup, J.P. Morgan, CICC, BOC International, Ipreo, Moody's Investors Service, Hogan Lovells, Jones Day, Minter Ellison, Quam Asset Management, American Appraisal, BMI Technical Consulting (Resources) Ltd, etc. In addition, senior managers from MSE Mongolian Stock Exchange, Hong Kong Stock Exchange, Korea Exchange, London Stock Exchange, and Tokyo Stock Exchange have featured in our conference and shared their knowledge and insights regarding IPO and capital raising with broad audience of our conference.
Mongolia Expert Series is one of the in-house research report of Frontier Securities which utilizes the information collected during the Frontier Securities' Annual Conference. We hope the series will provide genuine insight into Mongolian investment environment, as well as various capital raising opportunities present for Mongolian companies.
About Frontier LLC
Frontier Securities is the first local Mongolian Securities firm with a global network and international expertise. Established by Masa Igata, Frontier has been given full-service securities related license by the Financial Regulatory Committee (FRC) of Mongolia. Frontier also has brokerage, dealing and underwriting licenses that are regulated by FRC. Since its establishment, Frontier's primary area of focus has been the cross-border investment banking business.
Contact
Ariunaa Kheeshig
Email: staff@frontier.mn
Masa Igata
Email: mi@frontier.mn
Frontier Securities
Tel: +976-7011-9999
Fax: +976-7011-1991
Web: www.frontier.mn
Foreign investors are supplying much of this investment financing with FDI growing 30% annually. At the current rate, total FDI in Mongolia will reach a total of USD11 billion in the next five years. 65% of last year FDI however went to mining which is not proportional to the needs mentioned earlier.
There are therefore plenty of opportunities in infrastructure, which include the ground transportation network, power supply and water. Railroads and highways are a key component as they are essential for the further development of the country; they unlock the potential of mining projects.
With 65% of Ulaanbataar residents still in Gers there is also a great need for housing and a five-year plan is being developed. The banking system is also relatively small compared to other emerging countries with the loans to GDP ratio at only 34% compared to 50% for Central and Eastern Europe and over 100% in the USA, China and Korea.
Outside equity is therefore needed as GDP is set to double.
The conclusion drawn by Mr. Koppa is therefore that while major players will provide a large amount of capital needed there are still opportunities for private equity and other entrepreneurial foreign investors to cover a range from USD15 billion to 20 billion.
ABOUT MR. RANDOLPH KOPPA
Mr. Koppa is President of TDB and since March 2011 he serves as President of TDB Capital LLC as well. He came to Mongolia in 2004 as part of the management and technical assistance program provided to TDB by ING Bank.
Mr.Koppa also serves as Chairman of the Mongolian Mortgage Corporation (MIK) and is a member of the Board of Directors of the Business Council of Mongolia and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
In May 2011, Mr. Koppa received the Polar Star Award from President Elbegdorj in recognition to his contribution to developing the banking and finance sector in Mongolia. In 2007, Mr.Koppa was honored by the Mongolian National Chamber of Commerce and Industry with its SILK ROAD AWARD for his contribution to sustainable growth in the local financial sector.
Mongolia represents Mr.Koppa's twelfth country in his 43 year international banking career. He is a graduate in International Relations from the University of Wisconsin.
ABOUT MONGOLIA EXPERT SERIES
This year's conference, titled "Mongolia: Capital Raising and Investment" was the fifth edition of its kind to be organized by Frontier Securities. Having grown year on year in terms of importance since 2007, this conference has become a major event for anyone interested in exploring the latest developments in Mongolia's business environment from key direct sources. The focus of this last edition, held in the context of a robustly growing economy and booming mineral exports, encompassed the dynamics of capital raising from the viewpoint of the Mongolian government and local private sector by way of privatization and/or bond issue. It further provided the global investors community (266 Mongolian and foreign entities covering 19 countries were represented) with some relevant and up-to-date insights about the numerous opportunities offered by a wide array of sectors in the country, the most prominent of which being the mining sector.
The conference has gathered more than 500 prominent industry leaders and government officials from organizations such as Foreign Investment and Foreign Trade Agency, State Property Commission, Ministry of Road and Transportation, MonAtom, Erdenes MGL, Mongol Bank, Government of Mongolia, Ministry of Mineral Resources and Energy, Mongolia Development Bank, National Development and Innovation Committee, TDB Mongolia, Prophecy Resource Corp, Mongolian Mining Corporation, South Gobi Energy Resource as well as various professionals from international financial markets, including; Citigroup, J.P. Morgan, CICC, BOC International, Ipreo, Moody's Investors Service, Hogan Lovells, Jones Day, Minter Ellison, Quam Asset Management, American Appraisal, BMI Technical Consulting (Resources) Ltd, etc. In addition, senior managers from MSE Mongolian Stock Exchange, Hong Kong Stock Exchange, Korea Exchange, London Stock Exchange, and Tokyo Stock Exchange have featured in our conference and shared their knowledge and insights regarding IPO and capital raising with broad audience of our conference.
Mongolia Expert Series is one of the in-house research report of Frontier Securities which utilizes the information collected during the Frontier Securities' Annual Conference. We hope the series will provide genuine insight into Mongolian investment environment, as well as various capital raising opportunities present for Mongolian companies.
About Frontier LLC
Frontier Securities is the first local Mongolian Securities firm with a global network and international expertise. Established by Masa Igata, Frontier has been given full-service securities related license by the Financial Regulatory Committee (FRC) of Mongolia. Frontier also has brokerage, dealing and underwriting licenses that are regulated by FRC. Since its establishment, Frontier's primary area of focus has been the cross-border investment banking business.
Contact
Ariunaa Kheeshig
Email: staff@frontier.mn
Masa Igata
Email: mi@frontier.mn
Frontier Securities
Tel: +976-7011-9999
Fax: +976-7011-1991
Web: www.frontier.mn
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