Mongolia: The Trade and Development Bank of Mongolia
| country: Mongolia
The extended annual review report (XARR) identifies two good practices in this Project: (i) the introduction of a put option, which serves as a good exit strategy and gives ADB valuable protection from potential price and reputational risk; and (ii) the combination of a loan and equity investment, which allows the beneficiary bank more room to expand its portfolio and helps strengthen its capital base, while offering ADB an opportunity to help the bank adopt standard practices for good corporate governance. This validation generally agrees with these lessons highlighted by the XARR. In addition, the Project is a good example of complementary interventions by regional departments and the Private Sector Operations Department (PSOD) considering that the small-scale technical assistance (SSTA) processed by the Mongolia Resident Mission contributed to TDB’s due diligence process for the investment proposal, and that the Project reinforced related policy dialogue and the Second Financial Sector Program.