Feb. 9 (Bloomberg) -- Goldman Sachs Group Inc., the fifth- biggest U.S. bank by assets, will buy 4.8 percent of Trade & Development Bank of Mongolia LLC to help the lender develop as the economy expands.
“Mongolia is a booming and fast developing economy driven by growth in mining sector and commodities exports,” Balbar Medree, chief executive officer of Trade & Development Bank, said in a statement today, without giving the value of the deal. “Goldman Sachs’ global expertise and financial strength will help us grow further and enhance our offering.”
Mongolia, whose economy grew 20.8 percent in the third quarter of 2011, must invest as much as $68 billion within four years in new mines, roads and housing, Trade & Development Bank predicts. Moody’s Investors Service in December 2010 raised the lender’s outlook to stable from negative, citing “improvement in liquidity, capital position and asset quality trend.”
Trade & Development Bank, formed in 1990, was the first lender in Mongolia to receive an investment from the Asian Development Bank and International Finance Corp., which pumped in $11 million in 2004, according to its website. The bank had $1.3 billion of assets by the end of September.
--Luo Jun. Editors: Nathaniel Espino, Russell Ward
To contact Bloomberg News staff of this story: Luo Jun in Shanghai at jluo6@bloomberg.net
To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net
Source:Bloomberg news service
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