Capital Bank and Soyombo Insurance Announce a Milost Financing

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.”

About Capital Bank LLC

Capital bank received the first commercial bank license on September 14, 1990. 1990 was a unique year of transition to a market economy and a two-tier banking system. Since its inception, Capital Bank has been maintaining its position and color in the financial markets and has been operating in 60 different branches throughout the country, with over 360 specialized teams, 5 departments, 4 divisions, 11 units and more than 500,000 permanent members. Our clients are based on modern technology and technology that provide all kinds of banking services. Capital Bank honors Mongolian laws and regulations and acts as a transparent and fair competition principle within the law. It is based on full-fledged e-commerce, high customer interest, support for small and medium-sized businesses, social responsibility and environmentally friendly green banks, Development of environmentally sound micro-green industries in Mongolia. www.capitalbank.mn

About Palewater Advisory Group Inc.

Palewater Advisory Group is a multinational corporate and public affairs advisory firm with headquarters in New York. We specialise in cross-border and M&A transactions, financing, public affairs, political campaign capital raising and strategy. Collectively as the team, we have had an excellent track record with more than 1000 references in our line of advisory work. We have a robust and yet solid network of contacts with specific focus on certain core industries, investment and banking communities. Our directors, leaders, professionals, and senior advisors collectively provide access to senior industrial, political, economic, government and financial decision makers throughout the world. We provide individual and personal advice and react swiftly to our clients’ needs, while always providing direct access to the team, including the partners involved. As a professional services firm, we provide the best possible advice based on confidentiality and total discretion. We are committed to the principles of integrity and client service, and operate free from any conflict of interest. www.palewateradvisory.com

About Soyombo Insurance Limited

Our company has been in Mongolia for the 26th year since it was established as a second insurance company in Mongolia, formally state-owned "Insurance Co-operatives" in 1990. In 2010 we became a part of GOURT Group and we have expanded our insurance portfolio based on our national investment and management team and now we have 12 branches across the country. In 2008, we were the first insurance company that reached equity with 1.0 billion MN. We are acknowledged as the insurer, best ever to assess risk and technically price the insurance cover in line with its stated risk appetite. The Soyombo Insurance aims to deliver highly personalized service and financial solutions to businesses, professionals and their families. http://www.soyombodaatgal.mn

About Milost Bank Corporation

Milost Bank Corporation (MBC) is a bank holding company. Through subsidiaries, we offer banking and other financial services. We also offer insurance and wealth management services. The company was incorporated in 2017 and MBC operates under Milost International Inc. http://www.milostbank.com

About Milost Global Inc

Milost Global Inc is an American Private Equity firm that is headquartered in New York City, with more than $25 billion in committed capital. Milost is at the intersection of creative investing and value creation. Milost is also a provider of alternative capital, mezzanine finance, and alternative lending to a broad range of industries across the globe including Technology, Transport, Cannabis, Education, Distribution, Mining, Oil & Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate, Alternative Energy and Infrastructure Development. www.milostglobal.com

For more information

Mandy An
mandy.an@palewateradvisory.com
Tel: +1-212-709-8206
Fax: +1-212-943-2300
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