Legislationdbmleasing.mn/en/wp-content/uploads/DBML_Intro_PPT.pdfLegislation GOVERNMENT RESOLUTION...
Transcript of Legislationdbmleasing.mn/en/wp-content/uploads/DBML_Intro_PPT.pdfLegislation GOVERNMENT RESOLUTION...
Legislation
GOVERNMENT RESOLUTION #407 To establish a financial leasing company
dedicated towards providing and financing leasing services as a subsidiary
of the Development Bank of Mongolia(DBM) in accordance with the Law on
Financial Leasing of Mongolia.
ECONOMIC RECOVERY PROGRAM: 2016
The establishment of a financial leasing company
for the purpose of providing financing for major economic projects.
JUNE 17th, 2017“DBM LEASING” LLC established as a subsidiary of Development
Bank of Mongolia
BOARD RESOLUTION of 2017To establish a subsidiary company
of Development Bank of Mongolia
Agriculture
Health
Energy
Manufacturing
Mining Transportation
Mission
▪ Support the sustainable
economic development of
Mongolia
▪ Increase national productivity
▪ Promote export
Advantages
▪ Financial leasing options with
Low Interest rate
and Long Duration (flexible)
▪ Target strategic sectors
Target Sectors
Organizational Structure
Shareholders
Board of directors
Chief Executive Officer
Deputy Director
Administrative Committee
Administrative, Financial Management Department
Leasing DepartmentFunding DepartmentRisk Management and
Monitoring Department
Leasing Committee
Risk Committee
Secretary of Board of Directors
Internal Audit
Subsidiary of Development Bank of Mongolia
100% State Owned Entity
Financial Institution of
the manufacturers’
country
Loan Agreement
Manufacturer
Transfer of payment
Transport / Service
Financial Leasing agreement
Financial leasing operation model
Funding Amount Currency Duration Interest
Development Bank of Mongolia
1.2 billion
5.9 billion
3.5 years
3 years
5.95%
11.59%
Vnesheconombank10.0 million
8.4 million
5 years
5 years
3.6%
3.25%
Ministry of Finance 10.8 billion 10 years 2.25%
▪ Our company received long-term funding with 3-10 years ofduration in order to finance projects and programs ineconomically significates sectors to support diversifiedeconomic development.
▪ The weighted average of total funds is 4.65% of MNT.
13%
39%
48%Ministry of Finance
Development Bankof Mongolia
Vnesheconombank
Funding Structure
18.04
13.83 13.9
27.63
23.72 23.3
31.43
25.6428.32
30.3526.62 27.08
0
5
10
15
20
25
30
35
Asset Financial Leasing Portfolio Liability
2017Q4 2018Q2 2018Q4 2019Q2
Financials, million USD
0.20%
0.85%
0.4%
ROA
0.87%
6.6%
3.0%
ROE
25%
15%12%
CAR
100%
70%57%
Liquidity
4.204.23
4.36
Equity
2017Q4 2018Q4 2019Q2
27.6323.72 23.3
31.4325.64 28.3230.35
26.62 27.08
45.1
26.62
7.2
0
10
20
30
40
50
Asset
Financial Leasing
Portfolio Liability
2018Q2 2018Q4 2019Q2 Increase in equity
Capital injection outcome, million USD
• By injecting equity with 33.7 million USD / 15.0 million USD in cash and cash equivalents and 18.7 million USD through transferring existing loan from Development Bank of Mongolia to common shares/:
• Asset will increase by 46 percent;• Improvement of financial indicators;• Increase in equity solvency;• Decrease in loan pressure.
4.20 4.23 4.36
37.80Equity
Capital injection outcome, million USD
12%
83.0%
87%
16%
1% 1%
2019.06.30 Increase in equity
Equity Liability Retained earnings
$30.35 $45.1
• Healthy Debt to Equity ratio
• Clean balance
• Decrease loan concentration
• Obtain low interest and long duration credit
lines as a result of increased investor
confidence
$16.1 million43%
Agriculture
Total provided financial Leasing 37.2 million USD
$1.0 million3%
Manufacturing
$8.5 million23%
Transportation
$11.4 million31%
Mining
Implemented Projects and Programs
Financial Leasing portfolio, by equipment
g
pi
g
52%
20%
16%
11%
1%
17%
Agriculture
Mining
Transportation
Manufacturing
g
i
w
7
28%
3%
11%
13%
45%
Combine Harvester
Tractor
Plough
Hay baler
Other
835equipment
Agricultural equipment and machinery /by type/
During this program, around17% of all equipment andmachineries in agriculturalsector were renewed, andanother 36% is pending to berenewed.
Implemented Projects and Programs
“Technical innovation in the agriculture sector, introduction of advanced technologies”
47%
36%
DBM Leasing has successfully leased, with funding fromVnesheconombank of Russia, a total of 835 equipmentand machinery worth USD 20.0 million
By the second quarter of 2019, 622 equipment andmachineries have been financially leased to 310companies through Crop Development Support fund.
Implemented Projects and Programs
Agricultureg
At least 51% increase in soil removal and costreduction is expected by providing financial leasing tokey coal suppliers of Erdenet and Darkhan thermalpower plants.
Extraction of Ovoot Tolgoit coal mine has increasedby 950 thousand cubic meters as a result ofleasing Komatsu PC 3000 excavator.
Implemented Projects and Programs
Miningi
In accordance with government resolution 198, DBMLeasing LLC, the Ministry of Road and Transport, andthe Ministry of Finance co-implemented the “Supportregional public transportation” project
DBM Leasing provided 17 companies with 40 largescale buses worth USD 4.0 million.In addition, 40 SHACMAN, CIMC heavy trucks withdouble trailers were successfully leased.
Implemented Projects and Programs
Transportationw
DBM Leasing has provided USD 0.4 million of financial leasing to a projectaiming to supply the construction and infrastructure industry withinternationally standardized rebar.Successful completion of the project will result in a manufacturing plant locatedat Bornuur Soum of Tuv Province, capable of producing 15000 tons of rebar peryear which will increase domestic rebar output by 8%.
▪ Our company has also provided financial leasing of 0.9 million USD to ananimal oil processing facility to promote domestic production.
▪ Provided financial leasing worth 0.6 million USD to a potato chipsmanufacturing plant to promote import substituting production.
▪ Within the scope of the project, the potato chips manufacturing facility willhave capacity to produce 150 tonnes annually.
Implemented Projects and Programs
Manufacturing7
Project financing requests, by sector Total of 18 projects with 89.2 million USDunder research.
Projects and Programs Under Research
34.1 million US D
Mining – 38 %
5.4 million USD
Agriculture – 6% 3.7 million USD
Manufacturing – 4%
1.5 million USD
Aviation – 2%
44.4 million USDTransportation – 50 %
g
i
p
vg
47%
21%
19%
7%
6%
USA ChinaMixed South koreaBelarusia Austria
RECEIVE REQUEST/Official letter requesting a
financial lease
DOCUMENTATIONSupporting documents to
meet requirements
CONTRACTSign financial leasing
agreement and receive equipment
PAYMENTRegular monitor of payment
END OF CONTRACT Lessee has full ownership of the equipment at the end of the contract.b
Financial Leasing Process
Funding and Cooperation
Exim bank
VnesheconombankRos Exim BankVeb-LeasingIBEC
Exim BankDevelopment BankManufacturing and Trade BankICBC-LeasingExim Bank of Taiwan
Exim bank
Sumimoto Mutsui BankInternational Cooperation BankExim Bank
Huntington BankProvidentBank
Euler HermesCommerz BankBerliner Sparkasse Bank
Trade AgencyDevelopment Bank
PEKAO
SACE Insurance
Exim bank
Web site: www.dbmleasing.mnE-mail: [email protected]: +(976)-7730-7070
Narnii Road 87, Floor 6Sukhbaatar districtUlaanbaatar, 14230, Mongolia