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We’re excited to share Mongolia DealBook 2025—CMM’s first flagship report tracking how Mongolia’s private sector accessed foreign capital and what it signals for the investment landscape.
And with earnings season underway, we also reviewed SIBs latest financial results to highlight what stood out and what it may mean going forward.
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🟣 Mongolia DealBook 2025: A Breakout Year for Foreign Capital
We’re excited to share the release of Mongolia DealBook 2025, our inaugural flagship report tracking how Mongolia’s private sector accessed foreign capital—and what it tells us about the country’s evolving investment landscape.
2025 was a breakout year. Across 41 completed transactions, Mongolian companies raised a total of USD 2.6 billion from international investors, spanning 19 companies and a broadening set of sectors and funding structures.
This DealBook was created to answer four simple but critical questions for global investors: Who raised capital? Who invested? Why was capital raised? And how were deals structured?
Key Highlights at a Glance
41 deals completed
USD 2.6 billion total capital raised
19 Mongolian companies accessed foreign funding
Sector Breakdown
Banking: 7 banks raised approximately USD 2.0 billion, reaffirming the sector’s role as the primary gateway for international capital—supported by sovereign credit rating upgrades and improved market access.
Non-Bank Financial Institutions (NBFIs): 8 NBFIs raised USD 108 million, reflecting strong investor appetite for impact-driven and specialized financial platforms.
Mining: Mongolian Mining Corporation issued USD 350 million bond on international market.
Other Sectors: Fintech, agriculture, and conglomerates collectively raised USD 39 million, signaling early but growing diversification beyond traditional sectors.
What This Tells Us About Mongolia
Three themes stand out:
Debt-led capital formation remains dominant, with private credit and bonds accounting for the vast majority of funding.
International institutional investors—DFIs, IFIs, and emerging market credit funds—continue to anchor Mongolia’s deal flow, particularly in financial services.
Use of proceeds is increasingly strategic, focused on SME lending, financial inclusion, digital expansion, and balance sheet optimization rather than short-term financing.
In short, Mongolia is not only raising more capital—it is raising it more strategically and from a broader set of global partners.
Why We Built the DealBook
At Capital Markets Mongolia (CMM), our mission is simple: to build a bridge between Mongolia and global capital.
The Mongolia DealBook 2025 is part of that mission. It is designed to:
Improve transparency around Mongolia’s private capital markets
Help international investors understand who the active players are
Support Mongolian companies as they position themselves for global capital
The data in this report is compiled from publicly available sources. While some transactions—particularly in mining—remain undisclosed, we believe this DealBook offers the clearest snapshot to date of Mongolia’s foreign investment activity.
🟣 Winners and Wait-and-Sees: Which Banks Weathered 2025?
The 2025 financial results show a cooling period for the banking sector. While asset growth remains strong across the board, profitability has become a challenge for most, with one notable exception leading the pack.
🟢 Khan Bank (MSE: KHAN) | The Outlier:
Khan Bank continues to dominate as the only major player showing significant profit growth.
Net Profit: ₮695 billion (+8.8% YoY).
Total Assets: Reached ₮23.9 trillion (+17.9%).
Shareholder Returns: A stellar year for investors with a 37% total return (21% price appreciation + dividends). With a payout ratio typically between 50-60%, expectations are set for a dividend of ₮200-210 per share.
🟡 XacBank (MSE: XAC) | Stability & Sustainability:
XacBank has emerged as the most stable performer in a volatile market, maintaining its bottom line while others saw dips.
Performance: Net profit held steady at ₮172.6 billion (+1.0%).
Credit Quality: Maintains an industry-leading non-performing loan (NPL) ratio of just 2.5%.
Highlights: Successfully upgraded to a B1 (Stable) rating by Moody’s and secured a $150M syndicate loan from FMO to support SMEs and green projects. Their share buyback program helped drive a 16.7% price increase over the year.
🔵 Golomt Bank (MSE: GLMT) | Massive Expansion, Compressed Margins:
Golomt focused heavily on scaling its footprint in 2025, though the costs of funding weighed on the final profit.
Asset Growth: The fastest grower in terms of size, with assets surging 23.4% to ₮19 trillion.
The Squeeze: Despite a 40.9% jump in interest income, rising interest expenses led to a 17.6% drop in net profit (₮345.1 billion).
Valuation: Despite the profit dip, its P/E of 3.1 and P/B of 0.7 suggest the stock may be undervalued relative to its massive asset base.
🔴 State Bank (MSE: SBM) | A Challenging Transition:
State Bank faced the toughest headwinds of the group in 2025, struggling to maintain its momentum from the previous year.
Profitability: Net profit fell sharply by 22.8% to ₮83.3 billion.
Market Sentiment: It was the only bank among the four to see its share price decline, dropping 3.6% over the last 12 months.
Valuation: Currently trades at a P/E of 4.4 and a P/B of 0.5, reflecting a cautious outlook from the market.
In 2025, Mongolia’s banking sector saw a general cooling in profitability, with Khan Bank standing out as the only major player to achieve growth in both net profit and share price. While Golomt Bank and XacBank focused on aggressive asset expansion and operational stability respectively, State Bank faced a tougher year with double-digit profit declines.
💡 Here are some of our recently published CMM Insights:
⛏️ Erdene Provides Bayan Khundii Gold Mine Update – Erdene Resource Development
💰 FMO Mobilizes USD 150 mln for XacBank to Accelerate Green and Inclusive Growth in Mongolia – FMO
📈 Mongolian Mining (SEHK:975) Is Up 13.4% After Stronger Coal Output and Portfolio Diversification Progress
🏭 Rio Tinto Releases Fourth Quarter 2025 Production Results
🚆 GMT Nordic Bonds – Mongolian Railway Opportunity
